Judge Shelves Shareholder Suit Against Bank Execs

Law360, New York (May 16, 2007, 12:00 AM EDT) -- A court has dismissed a proposed class action alleging that three former North Fork Bancorporation Inc. executives cheated shareholders by reaping an “egregious” $288 million following the bank's merger with Capital One Financial Corp.

U.S. District Judge Arthur D. Spatt ruled on May 7 that the shareholder suit met the provisions of the Securities Litigation Uniform Standards Act of 1998, which bars certain securities class actions filed under state law. The act was passed to prevent the abuse of class action lawsuits.

Former North Fork stockholder...
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