Judge Pares Investor Claims Over $500M Weatherford Tax Flub

Law360, New York (November 8, 2012, 5:37 PM EST) -- A New York federal judge on Wednesday threw out much of an investor class action brought against Weatherford International Ltd., several executives and Ernst & Young over tax miscalculations by the energy equipment company that overstated earnings by about $500 million, finding the investors failed to properly plead their case.

U.S. District Judge Lewis A. Kaplan ruled, among other things, that the plaintiffs failed to adequately plead that Weatherford and the executives had a motive to commit fraud, rejecting the investors' argument that discretionary bonuses tied...
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