7th Circ. Tosses Investors' Class Action V. Fidelity

7th Circ. Tosses Investors' Class Action V. Fidelity - 2/24/2009 , Class Action News, Class Action, Securities News, shareholder class action, claim, litigation, securities action, common stock'>

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HEADLINES \| SETTLEMENTS AND DISMISSALS \| COURT FILINGS LINKS TO OTHER NEWS \| NEWS ARCHIVE	HEADLINES ARCHIVED SETTLEMENTS AND DISMISSALS ARCHIVED

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7th Circ. Tosses Investors' Class Action V. Fidelity
Jacqueline Bell

Securities Law 360. February 24, 2009
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The U.S. Court of Appeals for the Seventh Circuit has tossed a proposed class action filed against Fidelity Management & Research Co. alleging the company violated a contract with investors, ruling that the plaintiffs' claims were precluded by federal securities law. In a unanimous ruling issued Monday, the Seventh Circuit disagreed with the plaintiffs’ contention that their claims fell under contract law, ruling both that the dispute was a securities law question and that the class action claims failed to clear necessary hurdles under federal securities law, in part because the plaintiffs could not prove that any injuries or losses were caused by the alleged misconduct. The named plaintiffs in the proposed class action, David Kurz and Raymond Heinzl, are former investors in portfolios managed by Fidelity Management & Research Co. and FMR Co. Inc. The plaintiffs had filed suit in state court, claiming that Fidelity broke a contract with investors when some of its employees allegedly accepted bribes to place trades through Jeffries & Co. … The case is Kurz et al. v. Fidelity Management & Research Co. et al., case number 08-2733, filed in the U.S. Court of Appeals for the Seventh Circuit.

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