Mass. Court Shows Little Patience For Exchange Act Claim
October 23, 2012, 4:10 PM EDT
Law360, New York (October 23, 2012, 4:10 PM EDT) -- Directors and officers issuers and policyholders concerned about their exposure to Securities Exchange Act of 1934 claims for overly optimistic wind energy deals may be breathing easier in the wake of a Massachusetts federal district court's holding that a pension fund could not state a viable cause of action against American Superconductor.
In Lenartz v. American Superconductor Corporation, et al., No. 11-cv-10582 (D.Mass. Jul. 26, 2012), Judge William Young dismissed claims under the act’s Sections 10(b) and 20(a), and Rule 10b-5, holding that the plaintiffs' allegations...