Thursday, 28 July 2016
Last updated 8 hours ago
Mar 20 2012 | 1:03pm ET
The brokerage alleged to have conspired with hedge funds to drive down the share price of Fairfax Financial Holdings will have to defend itself, a judge ruled.
New Jersey Judge Stephan Hansbury rejected Morgan Keegan's dismissal bid, saying that "there's more to this case than the statements made in a couple of reports." Hansbury's ruling is a rare legal victory for the Canadian insurer, which has seen its once-sprawling case whittled down, including the dismissal of claims against SAC Capital Advisors, Third Point and Kynikos Associates.
Hedge fund Exis Capital Management remains a defendant in the $8 billion racketeering lawsuit, which was filed in 2006. A trial is scheduled for September.
"It seems to me an innocent truthful statement could be part of the conspiracy," Hansbury ruled.
Morgan Keegan said that it would file another motion to dismiss before the trial.
Fairfax has accused Morgan Keegan and the hedge funds of conspiring to drive down its share price and engaging in insider-trading.