Macquarie Infrastructure Investor’s Lawsuit Revived on Appeal

An investor’s securities fraud suit against Macquarie Infrastructure Corp. over the impact of a new fuel oil regulation was reinstated by the Second Circuit Tuesday.

The investor, Moab Partners LP, adequately alleged circumstances where Macquarie was obliged to disclose its assessment of the regulation’s consequences, the appeals court panel said in an unpublished, unsigned opinion.

Moab alleged the International Maritime Organisation’s impending regulation restricting No. 6 fuel oil would affect Macquarie because it owned numerous fuel tanks for that type that would have to be repurposed at considerable expense. But Macquarie didn’t disclose the extent of its No. 6 tank ...