2nd Circ. Shuts Down GE Investors’ Fraud Action

Law360, New York (November 18, 2011, 4:05 PM EST) -- The Second Circuit on Friday affirmed a New York district court's decision to dismiss a securities class action against General Electric Co., finding the investor plaintiffs had failed to show how the company had caused them economic harm.

In a unanimous summary order, the appeals court upheld the federal court's ruling that the investors had failed to state a claim in their suit accusing GE of violating securities laws by failing to disclose alleged risks to the company's stock price.

The suit arose in October 2008,...
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