Manulife Escapes Shareholder Fraud Action

Law360, New York (May 23, 2011, 8:44 PM EDT) -- A New York federal judge on Monday skewered a putative securities class action against Manulife Financial Corp. but gave shareholders another chance to bolster allegations that Manulife misrepresented its market exposure and knowingly deceived investors.

While plaintiffs are free to revise their fraud claims, they face an uphill battle as U.S. District Judge John F. Keenan found that the misstatements in question were not actionable, and even if they were, that the amended complaint currently failed to adequately plead scienter.

The shareholders filed suit in September...
To view the full article, register now.