Third Time No Charm for Amended Securities Complaint

Post-Discovery Complaint Amendment Allowed

By Deborah Elkins
Published: May 3, 2013
Tags: Judge James C. Cacheris, Securities Fraud, U.S. District Court - Eastern District

In an investor’s suit alleging defendant technology company and its founder committed securities fraud, an Alexandria U.S. District Court overrules defendants’ objections and accepts the magistrate judge’s recommendation to allow plaintiff to file a second amended complaint and motion to compel. In his first amended complaint, plaintiff alleged defendants committed securities fraud by selling plaintiff [...]

Records System Contract Prompts Fraud Claim

By Deborah Elkins
Published: February 12, 2013
Tags: Judge T.S. Ellis III, Securities Fraud, U.S. District Court - Eastern District

A Richmond U.S. District Court grants a motion to certify a class of investors to sue a public IT company on securities fraud claims alleging company executives made misleading statements of material fact about the company’s ability to fulfill a multi-billion dollar contract to develop a fully integrated records system for the United Kingdom’s National [...]

Investor States ‘Loss Causation’ for Fraud Claim

By Deborah Elkins
Published: December 5, 2012
Tags: Judge James C. Cacheris, Securities Fraud, U.S. District Court - Eastern District

In an amended complaint alleging defendants, a technology company and its founder, chair and CEO, committed securities fraud by selling plaintiff investor a series of notes as investments to allow defendant company to bring to the U.S. technology the individual defendant’s uncle allegedly developed in Korea to convert plastic waste into oil, the Alexandria U.S. [...]

No Securities Fraud Claim for ‘Worthless’ Notes

By Deborah Elkins
Published: December 5, 2012
Tags: Judge James C. Cacheris, Securities Fraud, U.S. District Court - Eastern District

An investor who purchased a series of notes from a defendant he met at his tennis club, investing $32 million in defendant’s purported scheme to bring to the U.S. technology his uncle developed in Korea to convert plastic waste into oil, has his suit for fraud and securities fraud dismissed by an Alexandria U.S. District [...]

IT Contract, Audit Statements Support Fraud Claims

By Deborah Elkins
Published: October 15, 2012
Tags: Judge Henry E. Hudson, Securities Fraud, U.S. District Court - Eastern District

A Richmond U.S. District Court says a putative class of investors may sue a public IT company on securities fraud claims alleging company executives made misleading statements of material fact about the company’s ability to fulfill a multi-billion dollar contract to develop a fully integrated records system for the United Kingdom’s National Health Service, and [...]

Securities fraud claim arbitrated by FINRA – $142,437 Arbitration Award

By Virginia Lawyers Weekly
Published: June 18, 2012
Tags: Securities Fraud

This was a FINRA customer sales practice arbitration that proceeded to final evidentiary hearing in Richmond against Community Bankers Securities LLC. The claims tried involved investments in AIC, the parent company of CBS, sold in September 2009 by CBS registered representative John Robert Graves to claimants. The claims asserted included violation of the Virginia Securities [...]

No Veil-Piercing for Stock Trading Fraud

By Deborah Elkins
Published: January 10, 2012
Tags: Judge Gerald Bruce Lee, Securities Fraud, U.S. District Court - Eastern District

In the Securities and Exchange Commission’s complaint that defendants’ “Teach Me to Trade” training programs carried out a scheme to dupe inexperienced investors into buying seminar packages and trading stocks, the Alexandria U.S. District Court dismisses the SEC’s claim for piercing the corporate veil to hold two individual defendants liable, but says the SEC can [...]