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9th Circ. Revives Suit Over ChinaCast CEO's $120M Fraud

Law360, Los Angeles (October 23, 2015, 8:53 PM EDT) -- The Ninth Circuit on Friday revived a putative shareholder class action against ChinaCast Education Corp. over its chief executive officer’s looting of $120 million from the company’s coffers, ruling it might have to share the blame for the executive’s intentional misleading of investors.

The appeals court, reversing a lower court’s dismissal of activist fund Costa Brava Partnership III LP’s suit, ruled that Ron Chan Tze Ngon’s fraud could be imputed to ChinaCast, even though the CEO’s alleged embezzlement and misleading of investors were adverse to its...
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Case Information

Case Title

In re: Costa Brava Partnership III v. Chinacast Education Corp., et al


Case Number

12-57232

Court

Appellate - 9th Circuit

Nature of Suit

3850 Securities, Commodities, Exchange

Date Filed

December 11, 2012

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