2nd Circ. Tosses Investor Suit Against Chinese Battery Co.

Law360, New York (March 25, 2015, 7:11 PM EDT) -- The Second Circuit on Wednesday affirmed a lower court’s denial of leave to amend a complaint accusing auditors of a Chinese battery manufacturer of misleading investors by disregarding numerous “red flags” that should have alerted them to the company’s fraudulent financial statements.

A New York federal court denied plaintiffs leave to amend a proposed complaint against the auditors of Advanced Battery Technologies Inc. for failing to adequately plead scienter in claiming defendants committed securities fraud by ignoring that the manufacturer's financial reports filed in China differed greatly from those filed with the U.S. Securities and Exchange Commission, as well as not...

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