United States Eighth Circuit

In an action for damages arising out of a Ponzi scheme perpetrated by a registered representative of one defendant and general agent of another, the dismissal of the complaint is affirmed in part where the complaint did not allege the additional facts necessary to demonstrate that defendant actually exercised control over its subsidiary's general operations rather than merely possessing the ability to do so. However, the order is reversed in part where plaintiffs met their burden of alleging falsity under the Private Securities Litigation Reform Act.

Appellate Information

• Decided 08/20/2010
• Published 08/20/2010

Judges

• Michael J. Melloy

Court

• United States Eighth Circuit

Counsel