MCG Capital Corp. (Nasdaq: MCGC) has announced the dismissal, with prejudice, of the securities class action filed against the company in the E.D. of Va.
Even without the benefit of reading an opinion, the “with prejudice” part of the decision does not seem surprising. The suit was based on alleged misstatements made by MCG Capital regarding the academic background of the company’s chief executive. Last November, the company revealed that its CEO did not, in fact, have an undergraduate degree from Syracuse University. The announcement caused a stock price decline.