China North Pushes 2nd Circ. To Kill Investors' Suit

Law360, New York (May 17, 2012, 7:56 PM EDT) -- Energy company China North East Petroleum Holdings Ltd. asked the Second Circuit on Thursday to kill an investors' class action over a major accounting restatement, saying the stock price recovered enough from an initial hit for investors to cash out.

The investor behind the putative securities fraud class action, Swiss firm Acticon AG, passed up about a dozen chances to sell its shares at a profit after China North disclosed accounting problems, a lawyer for China North said at oral arguments in Manhattan.

"When a plaintiff...
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