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Investors' allegations that a technology company and its officers should have known that a multimillion-dollar deal the company touted in two press releases wouldn't materialize can be the basis of securities fraud claims, the 5th U.S. Circuit Court of Appeals held recently. "Further discovery may refute the inferences, but it is not unwarranted to infer that when a company's big deal collapses so fast, something was amiss at the outset," Judge Edith Jones wrote.
May 09, 2005 at 12:00 AM
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The original version of this story was published on Law.Com
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