Court Tosses Pension Fund’s Fraud Claims

ST. LOUIS (CN) - A pension fund was not specific enough in its securities fraud allegations against a technology company, the 8th Circuit ruled.

The NECA-IBEW Pension Fund claimed that Hutchinson Technology made false financial statements before its announcement in late 2005 that its sales and earnings would drop.

Huntington, which produces suspension assemblies for CD players, had said for months that demand for its product has increased before revising its projections downward.

The pension fund sued Hutchinson under the Private Securities Litigation Reform Act, but Judge Smith agreed with the trial court that the plaintiff made "bare allegations or allegations supported by anecdotal information about specific customers with no historical context."

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