6th Circ. Revives Fraud Action Against Ex-Dana Execs

Law360, New York (May 25, 2011, 4:21 PM EDT) -- The Sixth Circuit on Wednesday revived for the second time a putative class action accusing the former heads of Dana Corp. of securities fraud for trumpeting the auto parts maker’s condition while it actually spiraled toward bankruptcy.

A three-judge panel said that a district court took a piecemeal approach to the claims when it dismissed the shareholder complaint for failing to plead scienter, whereas the totality of the plaintiffs’ allegations adequately infers that former Dana CEO Michael Burns and former Chief Financial Officer Robert Richter knew...
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