Judge Guts Royal Bank Of Scotland Securities Action

Law360, New York (January 13, 2011, 1:34 PM EST) -- A federal judge has dismissed most claims in a consolidated shareholder class action alleging that Royal Bank of Scotland Group PLC and several U.S. underwriters fraudulently hid exposure to risky mortgage-backed securities.

In light of the U.S. Supreme Court's recent decision effectively barring “foreign-cubed” securities cases, Judge Deborah Batts of the U.S. District Court for the Southern District of New York on Tuesday nixed claims regarding the bank's ordinary shares because they are not traded on U.S. exchanges. The ruling did not address separate allegations arising...
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