Jefferies Corporate Jet Misrepresentation Suit Tossed on Appeal

Jefferies Financial Group Inc. directors can evade claims that they misled investors in proxy statements related to board re-elections, as well as executive compensation and the use of corporate jets for personal travel, the US Court of Appeals for the Second Circuit ruled on Tuesday.

The shareholder who brought the derivative action, Stanley Rubenstein, couldn’t show how the alleged misrepresentations caused losses for investors, the appeal panel ruled, upholding the federal court’s judgment in the case.

Initially filed in 2020, Rubenstein’s suit alleged that the Jefferies directors issued false and misleading proxy statements in violation of the Securities Exchange Act ...