CIT, Execs Can't Kill Investor Suit Over Risky Loans

Law360, New York (June 11, 2010, 6:13 PM EDT) -- Business lender CIT Group Inc. has lost a bid to dismiss a consolidated shareholder suit claiming it hid risks associated with its subprime business and private loans it issued to students of a now-defunct helicopter training school.

Judge Barbara S. Jones of the U.S. District Court for the Southern District of New York on Thursday denied a motion to dismiss filed by CIT, which emerged from bankruptcy in December minus $11 billion in debt.

Lead plaintiff Pensioenfonds Horeca & Catering and named plaintiff Don Pizzuti alleged...
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