Fremont Investors Lose Bid To Revive Securities Suit

Law360, San Diego (November 29, 2011, 6:29 PM EST) -- The Ninth Circuit on Tuesday refused to reinstate the New York State Teachers’ Retirement System’s putative securities class action against former executives at bankrupt subprime lender Fremont General Corp.

In a short order, the three-judge panel found that the plaintiffs’ allegations of securities violations were not pled with the specificity required by the Private Securities Litigation Reform Act of 1995 and Rule 9(b) of the Federal Rules of Civil Procedure. The appeals court also held that their scienter claims failed to show that each defendant had...
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