NovaStar Fights For Dismissal Of ERISA Suit

Law360, New York (December 11, 2008, 12:00 AM EST) -- Troubled NovaStar Financial Inc. has hit back at claims by a former employee that it caused millions of dollars in losses to workers' retirement accounts and breached federal laws by investing in its own struggling shares, filing a motion in court to dismiss the case.

The beleaguered subprime mortgage lender, which is accused in the putative class action of mismanaging its 401(k) plan and breaching the Employee Retirement Income Security Act, said the plaintiff who brought the case in July had no standing to do so....
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