NovaStar ERISA Suit Gets Class Action Status

Law360, New York (April 8, 2009, 12:00 AM EDT) -- A judge has certified a class in a suit against NovaStar Financial Inc. alleging the one-time subprime mortgage lender caused millions of dollars in losses to workers' retirement accounts and breached federal laws by investing in its own struggling shares.

Judge Nanette Laughrey of the U.S. District Court for the Western District of Missouri on Monday granted a motion for class certification by the named plaintiff, former employee Jennifer Jones of Kansas City, Mo.

Judge Laughrey certified a class consisting of all participants and beneficiaries of...
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