Comerica Investor Loses Revival Bid in Federal Program Suit (1)

A Comerica Inc. investor failed to convince an appellate panel to reopen allegations the acquired bank covered up noncompliance risking its servicing of government benefits cards.

The pension fund leading the proposed class action failed to sufficiently tie loss causation to stock price declines, a required pleading for securities fraud claims, the US Court of Appeals for the Ninth Circuit said, affirming the suit’s dismissal.

The stock price’s falter after a 2023 American Banker article “was modest, typical, and quickly reversed,” the unpublished opinion said. The Nova Scotia Health Employees’ Pension Plan didn’t adequately allege fraud reported in the article, ...