Suit Failed To Plead Dynex's Scienter: 2nd Circuit

Law360, New York (June 26, 2008, 12:00 AM EDT) -- An appeals court has ruled that a shareholder failed to adequately plead scienter against Dynex Capital Inc. and Merit Securities Corp. in a securities fraud lawsuit, but stopped short of ruling that no plaintiff could ever plead corporate scienter without individual scienter.

Judge John M. Walker of the U.S. Court of Appeals for the Second Circuit on Thursday overturned a district court ruling when he said that the Teamsters Local 445 Freight Division Pension Fund had failed to allege securities fraud against Dynex and Merit, but...
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