Former Polished.com Executives Prevail in Fraud Allegations Case

Former executives of now-bankrupt Polished.com overcame claims they concealed fraudulent accounting and business practices that hurt the furniture and appliance retailer’s stock price when revealed.

Former employees’ testimonies weren’t specific enough or otherwise weren’t sufficient to bolster the grave allegations the investor fund asserted against management, Judge Nicholas G. Garaufis of the US District Court for the Eastern District of New York said. In dismissing the proposed class action Tuesday, Garaufis said the investor fund leading the case’s second amended complaint didn’t adequately fix the shortcomings made in a prior pleading.

The fund sufficiently pleaded some statements in restated financial ...