On Rehearing, Panel Affirms Dismissal Of Securities Claims For Lack Of Scienter

Mealey's (April 11, 2019, 1:50 PM EDT) -- NEW ORLEANS — On rehearing, a Fifth Circuit U.S. Court of Appeals panel on April 10 ruled that a federal district court did not err in dismissing a securities class action lawsuit against a provider of orthotic and prosthetic patient care services and certain of its current and former executive officers because a pension fund failed to adequately show that the defendants acted with the requisite scienter in allegedly concealing improper accounting of the company’s Medicare reimbursements for its services in violation of federal securities law (Alaska Electrical Pension Fund v. Vinit K. Asar, et al., No. 17-50162, 5th Cir., 2019 U.S. App. LEXIS 10637)....