United States Second Circuit

In a securities fraud action alleging that defendant negotiated a contract for transfer agent services that saddled plaintiffs with excessive, misleadingly disclosed fees, dismissal of the complaint is affirmed in part where plaintiff could not seek damages that inured to its own benefit and not to the funds' benefit under the Investment Company Act. However, the order is vacated in part where: 1) defendants' disclosures concerning the transfer fee arrangements were inadequate and would be material to the average investor; and 2) defendants' misrepresentations proximately resulted in the regular deduction of identifiable amounts that would not have been deducted had defendants conformed their conduct to what the law required.

Appellate Information

• Argued 03/05/2009
• Decided 02/16/2010
• Published 02/16/2010

Judges

• BARRINGTON D. PARKER, Circuit Judge:, Before B.D. PARKER, Circuit Judge, and HAIGHT, District Judge.

Court

• United States Second Circuit

Counsel

• For Appellant:
  
• Joseph R. Seidman, Jr. for Bernstein Liebhard & Lifshitz, LLP, New York, N.Y., Richard Acocelli, for Weiss & Yourman, New York, N.Y ., for Appellants.


• For Appellees:
  
• Christopher Meade, for Wilmer Cutler Pickering Hale and Door, LLP, New York, N.Y., Michael O. Ware, for Mayer Brown LLP, George I. Terrell, Alex Bourelly, Robert K. Kry, for Baker Botts, LLP, Houston, T.X., for Appellees.