Comerica Investor Suit Tossed for Failing to Prove Economic Harm

Shareholders failed to prove Comerica Inc. made misstatements and omissions that caused investors economic harm related to allegedly impermissible activity in a government aide program, a judge found, granting Comerica’s bid to dismiss an investor suit.

Nova Scotia Health Employees’ Pension Plan, as the lead plaintiff in a proposed securities class action, alleged that Comerica tried to minimize the market impact of public revelations that the bank allegedly violated federal law by engaging a Pakistani contractor. The contractor was hired to work on the Direct Express program, through which Comerica provides federal benefits on prepaid debit cards.

But the suit ...