Patriot Coal Investors Slam Execs' Bid To Ditch Fraud Suit

Law360, New York (July 22, 2013, 7:19 PM EDT) -- Shareholders suing two former Patriot Coal Corp. executives urged a Missouri federal judge Friday to keep the putative class action alive, saying they properly alleged that the brass knew of the now-bankrupt company’s lousy financial condition when it implemented a $45 million cleanup of selenium discharges.

The shareholders argued that U.S. District Judge Stephen N. Limbaugh Jr. should reject the executives’ motion to dismiss the suit, which was based on the argument that the shareholders did not adequately allege scienter.

The suit was launched in September...
To view the full article, register now.