WASHINGTON - The Supreme Court yesterday declined to review a federal appeals court ruling in a case that some bank and securities executives complain could lead to a flood of so-called fraud-by-hind-sight cases.

The case, UJB Financial Corp. v. Shapiro, arose after the bank's stock value declined substantially in 1990. Shareholders charged that the bank deliberately overstated the adequacy of its lending practices and provided inadequate loan loss reserves from 1987 through 1989.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.