6th Circuit Finds Welfare Fund Fails To Plead Scienter In Terminix Fraud Complaint

Mealey's (October 5, 2023, 2:58 PM EDT) -- CINCINNATI — A panel of judges in the Sixth Circuit U.S. Court of Appeals found that a federal judge in Tennessee was correct to dismiss a putative class complaint filed by a welfare fund against a pest control company and certain of its executives it accused of making misleading statements about its growth and concealing a legal battle over a destructive type of termite, with the panel agreeing that the welfare fund failed to present a strong inference of scienter....