Ex-CEO Of DVI Unit Ducks Securities Suit Over Bankruptcy

Law360, New York (January 24, 2013, 1:55 PM EST) -- The former head of a Diagnostic Ventures Inc. unit on Tuesday beat class claims that he misrepresented the company’s financial health to investors before DVI entered bankruptcy, after a Pennsylvania federal judge ruled the investors couldn’t prove they relied on his statements.

U.S. District Judge Legrome D. Davis granted former DVI Business Credit Inc. President and CEO Terry Cady’s motion for summary judgment, saying the plaintiffs had failed to prove they relied on Cady’s alleged deceptive statements and acts. As such, Cady cannot be held liable...
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