Oil Field Appraiser Can't Sink Securities Fraud Suit

Law360, Houston (December 6, 2012, 7:05 PM EST) -- A Texas appeals court on Thursday refused a second attempt by oil industry engineering consultant Ryder Scott Co. to toss a securities fraud suit lodged by financial firms including Highland Capital Management LP, which claim it overestimated reserves underlying their $23.6 million investment.

The First Court of Appeals once again upheld the dismissal of fraud and negligent misrepresentation claims against the company but allowed a Texas Securities Act claim against Ryder Scott to survive, rejecting an argument on rehearing that “cautionary language” in materials provided to...
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