3rd Circ. Affirms Investor Class Against Constar

Law360, New York (October 29, 2009, 7:14 PM EDT) -- A federal appeals court has upheld the certification of a securities class action claiming that Constar International Inc. and several financial firms misled investors about the plastic container manufacturer’s 2002 initial public offering by touting the company as strong and competitive when its business was allegedly deteriorating.

The U.S. Court of Appeals for the Third Circuit on Thursday shot down arguments by Constar and a group of underwriters that the district court adopted a “liberal construction” of Rule 23’s class certification requirements, concluding that the motion...
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