Salomon Smith Barney Class Action Dismissed

Investors tried to file a class action lawsuit against the investment firm for offering undisclosed incentives to brokers and financial advisers, extracting improper fees from investors and encouraging its propriety funds to invest in poorly performing companies. A Judge from the Southern District of New York dismissed the class action and noted that the plaintiffs could not proceed in their assertion of wrongdoing. All of plaintiffs' claims were dismissed with prejudice and claims for primary violations of the Securities and Exchange Acts could not proceed because plaintiffs failed to plead loss causation. (Aug-14-06) [LAW.COM]