A US judge has denied plaintiffs in a subprime litigation case the right to amend their claim after dismissing their case. Plaintiffs in similar positions will have to establish fraud and jurisdiction in a lot more detail in the first instance.
The lead plaintiffs (Labourers’ Pension Fund of Central and Eastern Canada and Employees’ Retirement System of the Government of the Virgin Islands) was suing Fortis in a class action for security fraud. It claimed that Fortis deliberately misrepresented its holding of collateralised debt obligations during the financial crisis.
The...