Mercer Shareholder Action Sent Back To State Court

Law360, New York (February 16, 2011, 3:45 PM EST) -- A federal judge has remanded to state court a putative shareholder class action challenging Red Oak Acquisition Corp.'s proposed $191 million purchase of Mercer Insurance Group Inc., ruling that the Class Action Fairness Act does not provide federal jurisdiction.

Judge Mary L. Cooper of the U.S. District Court for the District of New Jersey on Monday sent the suit back to the New Jersey Superior Court for Mercer County, where it was originally filed by Mercer shareholder Elchanan Rubin.

Red Oak and its parent company United...
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