Plaintiffs’ lawyers must identify anonymous witnesses in Aeropostale securities fraud case

“There are no ‘confidential witnesses’ in this case,” judge writes

Some witnesses in a securities fraud lawsuit against clothing retailer Aeropostale Inc. are anonymous no more. U.S. District Judge Colleen McMahon has ordered the plaintiffs’ lawyers (representing the city of Providence, R.I.) to identify nine witnesses who were cited anonymously in the complaint.

The lawsuit itself dates back to October 2011, when Providence alleged that Aeropostale was concealing problems from its investors—namely too much inventory and not enough sales. Once revealed, the problems caused the company’s stock price to drop. When McMahon declined to dismiss the lawsuit in March, the case moved into discovery, prompting the order to reveal the witnesses.

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