The U.S. Southern District Court has rejected a class-action lawsuit against
"Plaintiffs have not only not alleged why they lost money on their purchase of mutual fund stock, they have not alleged even that they, in fact, lost money on their purchase of the mutual fund stock," the judge ruled. "Because plaintiffs failed to please loss causation, the federal securities claims must be dismissed."
The attorney for Salomon Smith Barney, James N. Benedict, a partner with
However, the plaintiffs' attorney said they intend to repeal.