United States Seventh Circuit

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RK Co. v. See, 07-3984

In plaintiff's suit against Harvard Scientific Corporation (HSC) and its founder for inducing plaintiff to buy HSC stock through its misleading and false press releases, SEC filings and reports, in connection with defendant's claim of a new product to treat male and female sexual dysfunction, district court's judgment that defendant violated federal and state securities law, state deceptive practices law, and committed common law fraud, are affirmed where: 1) defendant waived the defense that plaintiff was not the "real party in interest" by failing to object during the more than seven years between the complaint and the beginning of trial; 2) defendant's constitutional and prudential standing arguments lack merit; 3) the evidence was sufficient to support the district court's conclusion of liability against the defendant as, based on the testimony and documentary evidence presented, the district court did not err in determining that HSC, under the control and direction of its founder, released misleading statements of material fact upon which plaintiff had relied in making its investment; 4) defendant has failed to include the transcript of the relevant motion hearing that led to the admitting of the deposition testimony; and 5) awarding prejudgment interest and attorneys' fees was reasonable.

Appellate Information

  • Argued 09/11/2009
  • Decided 09/22/2010
  • Published 09/22/2010

Judges

  • <a href="http://pview.findlaw.com/view/1283375_1">WILLIAMS</a>

Court

  • United States Seventh Circuit

Counsel