Investors’ Suit Against Blockbuster Dismissed
A federal judge in Dallas dismissed a lawsuit against Blockbuster Inc., ruling that investors couldn’t support their claims that the world’s largest video-store chain misrepresented its financial projections.
U.S. District Judge Barbara Lynn threw out the suit after concluding that Blockbuster shareholders couldn’t prove executives had issued misleading information about declining profit from video rentals and the effect of competing technologies on the company’s business, according to court papers.
Dallas-based Blockbuster’s shares rose 29 cents to $15.96 on the NYSE. The chain is 81% owned by Viacom Inc.
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