8 results for 'cat:"Fraud" AND cat:"Securities" AND cat:"Contract"'.
J. Ludwig grants summary judgment to the financial correspondent, the investment firm and the firm's founder the investors claim were involved with their transactions with a wealth management group that turned out to be a Ponzi scheme, which caused the investors to lose hundreds of thousands of dollars. The investors have failed to bring specific evidence of specific wrongdoing by the the correspondent, firm and founder, instead mostly reiterating the wrongdoing of the group and its chief, who is now in prison. The investors' claims of intentional misrepresentation, negligent misrepresentation, and claims of violations of Wisconsin statutes involving the sale of unregistered securities, fraud and unlicensed brokers fail, and the correspondent, firm and founder are dismissed. The investors have 14 days to make a case for why the firm's employee should not also be granted summary judgment.
Court: USDC Eastern District of Wisconsin, Judge: Ludwig, Filed On: February 7, 2024, Case #: 2:18cv2005, NOS: Other Contract - Contract, Categories: fraud, securities, contract
J. Gettleman grants a clinical research company’s motion to dismiss one of its former stock holders’ contract, fraud, securities and estoppel claims. The stock holder claims the company provided him with misleading data as to the value of his shares, which in turn meant he took on a much higher tax liability than he was expecting when he sold the shares following a merger the company went through in 2021. However, the court agrees with the company that the stock holder has failed to show the company acted with fraudulent intent. The court also opines the stock holder has failed to show that the company “promised to provide him with accurate, updated fair market value information” through a separate trading platform.
Court: USDC Northern District of Illinois, Judge: Gettleman, Filed On: December 20, 2023, Case #: 1:23cv5782, NOS: Other Contract - Contract, Categories: fraud, securities, contract
J. Castner grants the mutual fund managers' motion to dismiss the investors' complaint seeking a judgment that the managers' enforcement of their "frequent trading policy," under which they barred the investors from trading, breached their contracts with the investors and constituted conversion, among other civil violations. The investors have failed to state claims for any of the ten counts they list, since the managers' alleged actions appear to comport with the policy, the investors have not alleged facts supporting an inference that the managers acted in bad faith or with malice, and they have not alleged that they were deprived of property in which they had an interest, nor that the managers made misrepresentations or altered records.
Court: USDC New Jersey, Judge: Castner, Filed On: August 31, 2023, Case #: 3:22cv3723, NOS: Other Contract - Contract, Categories: fraud, securities, contract
J. Gorton partially allows a company’s motion to dismiss claims of securities fraud and tortious interference with a contract brought against it via class action by an asset management firm. It is unclear at this time if the firm’s claim of tortious interference with a contract is untimely. The firm’s securities fraud claims are untimely. The firm’s amended complaint cannot be dismissed for failure to state a claim because it plausibly argues that the company acted without justification by deliberately avoiding following the rights agreement they were obligated to follow.
Court: USDC Massachusetts, Judge: Gorton, Filed On: August 18, 2023, Case #: 1:22cv11315, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities, contract
J. Johnson denies the securities sellers' motion for summary judgment, ruling the promissory note signed over to them by the investor qualifies as a security under federal law, while statements about the startup's income, which is purported to be $10 million but is actually less than $100,00 annually, and the potential return on investment are sufficient at this stage to show reckless disregard on behalf of the sellers.
Court: USDC New Mexico, Judge: Johnson, Filed On: August 15, 2023, Case #: 1:21cv564, NOS: Other Contract - Contract, Categories: fraud, securities, contract
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C.J. Johnson denies the startup's motion for summary judgment, ruling disclosures about its stock price to the investor were not sufficient for the investor to believe there was an obvious risk he would lose his entire $750,000 investment. Furthermore, the claim he did not read the promissory note before signing it is irrelevant because the note said nothing about the company's performance, only that his money would be repaid with interest within one year.
Court: USDC New Mexico, Judge: Johnson, Filed On: August 15, 2023, Case #: 1:21cv564, NOS: Other Contract - Contract, Categories: fraud, securities, contract
Chancellor McCormick finds that an investor was fraudulently induced to invest in a cancer research foundation that promised a commercialized test to diagnose individuals with high risk for breast cancer. Through these misrepresentations, the investor prevails on four claims for breach of contract, declaratory relief, violation of the Delaware Securities Act and fraudulent inducement.
Court: Delaware Chancery Court, Judge: McCormick, Filed On: August 10, 2023, Case #: 12438-CM, Categories: fraud, securities, contract
J. Peterson denies the brother's motion to dismiss the sister's lawsuit, which alleges that the brother and the corporate officer fraudulently induced her to sell her 20% ownership interest in her family's company for $1.3 million, only for the brother and the corporate officer to sell the company for $162 million 15 months later, denying her $32 million in the process. The sister plausibly alleges that the brother and the corporate officer fraudulently induced her to sign the redemption agreement because they withheld key information, such as how the brother and the corporate officer regularly received offers to buy the company, which could have changed her mind about selling her shares at that time.
Court: USDC Western District of Wisconsin, Judge: Peterson, Filed On: July 24, 2023, Case #: 3:22cv400, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities, contract