2nd Circ. Revives Part Of Textron Investor Suit Over Arctic Cat

By Dean Seal (September 17, 2021, 9:07 PM EDT) -- A split Second Circuit panel decided Friday to partially reverse the dismissal of a proposed class action claiming Textron misled shareholders about aspects of its 2017 purchase of snowmobile company Arctic Cat.

While the full panel agreed with a New York federal judge's finding that the suit didn't establish there were any misstatements by Textron Inc. related to Arctic Cat's integration, expected performance and goodwill, two of the appellate judges said some of CEO Scott Donnelly's statements about clearing out the acquired company's old inventory could have misled investors.

"While expressing no view on the ultimate merits of [the suit's] theory...

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