United States Fourth Circuit
Fincke v. Radley, 14-1276
Judgment finding that appellant Fincke had made a false statement of material fact to investors in violation of Mass. Gen. Laws ch. 110A, section 410(a)(2) and that one such investor, Zimmel, was entitled to damages totaling $1.5 million for his investments that Fincke solicited "by means of" that material misstatement is affirmed, where: 1) Fincke misrepresented that he had received the opinion of patent counsel, formal or informal, for the purposes of securing investment, and he knew or should have known of the falsity of his statements explaining otherwise; 2) Fincke's attempt to distinguish between "advice" and "formal opinion" is frivolous and does not cure the obvious falsity of the misrepresentation; and 3) Fincke had solicited Zimmel's investments "by means of" the misstatements in the Business Plan, and because Zimmel need not demonstrate actual reliance on the misstatement, he can recover damages under section 410(a)(2) based on the use of the Business Plan to solicit the sale of stock.
Appellate Information
- Decided 01/13/2015
- Published 01/13/2015
Judges
- Lynch
Court
- United States Fourth Circuit