Fairfax Suit Survives Morgan Keegan Dismissal Bid

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.


In Depth

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Cash: An Asset In Adolescence

Aug 31 2017 | 3:34pm ET

If the investment industry has a rebellious teenager in the house today, that teenager...

 

From the current issue of