TD Bank, First Horizon Shed Investor Suit Over Failed Merger (1)

Toronto-Dominion Bank and First Horizon Corp. defeated investor allegations they misrepresented the approval prospects for a dashed $13.4 billion deal.

The First Horizon shareholders lacked standing to sue TD for securities fraud over statements about its own regulatory compliance and commitment to acquiring the bank, Judge Renée Marie Bumb said while dismissing without prejudice the proposed class action in the US District Court for the District of New Jersey. The US Court of Appeals for the Third Circuit would follow the Second and Ninth Circuit in a decision regarding investors who didn’t trade TD securities, she said.

They failed to ...