In a series of class actions filed last year in U.S. District Court for the District of Columbia, the plaintiffs – former shareholders of Carlyle Capital Corp. Ltd. – accused company officials of failing to disclose financial problems during its initial public offering in 2007 and then concealing the company’s worsening condition before it collapsed the following year.
In an opinion published yesterday, U.S. District Judge Amy Berman Jackson found that Carlyle Capital’s disclosures did put shareholders on notice of how the company was being run and also that the plaintiffs had failed to link any alleged fraud to their losses.
‘Enforcement 40’ for 2020
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