4th Circuit Affirms Dismissal Of Securities Suit For Failure To Plead Scienter

Mealey's (November 17, 2017, 9:34 AM EST) -- RICHMOND, Va. — Shareholders in a securities class action lawsuit against an energy provider and its CEO have failed to show that the CEO acted with the requisite scienter in misrepresenting to investors that the company had secured a contract renewal with a large customer because they have not shown that he knew his statements were misleading at the time he made them, a Fourth Circuit U.S. Court of Appeals panel ruled Nov. 15 in affirming a federal judge’s dismissal of the action (Maguire Financial LP, et al. v. PowerSecure International Inc., et al., No. 16-2163, 4th Cir., 2017 U.S. App. LEXIS 22968)....