United States Second Circuit

Summary judgment for defendant, the auditor of a collapsed hedge fund, on plaintiff's claims under Section 10(b) of the Securities Exchange Act of 1934 and for fraud and negligent misrepresentation under New York law, is: 1) affirmed in part, as to the judgment dismissing plaintiffs' state law claims; 2) vacated in part, as to the dismissal of plaintiffs' Section 10(b) claims because there is a genuine dispute as to whether plaintiffs suffered a direct injury at the time of investment by purchasing their shares in the funds at fraudulently inflated prices; and 3) remanded for the district court to consider in the first instance defendant's scienter argument.

Appellate Information

• Decided 11/08/2013
• Published 11/08/2013

Judges

• LOHIER

Court

• United States Second Circuit

Counsel