Securities Fraud: Client Sued for Securities Fraud Trial Judge Enters Judgment for Plaintiffs; Court of Appeals Reverses and Enters Judgment in Favor of Client on Securities Fraud Claim
We represented the defendant in this case. The transaction in question involved the sale of privately-held stock by our client to the plaintiffs. The company in which the stock was held ceased operations and the stock became worthless.
The plaintiffs, more than two years later, filed a lawsuit against our client for the return of their purchase money. One of the claims asserted by the plaintiffs was that our client had committed fraud in the sale of securities.
Our client denied the allegations. The trial court entered summary judgment for the plaintiffs. Our client appealed. The Court of Appeals held that the plaintiffs’ securities fraud claim was barred by the applicable statute of limitations and, accordingly, reversed the summary judgment and granted summary judgment to our client. The case was remanded to the trial court for further proceedings. The Opinion of the Court of Appeals was published and is now case law.
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