GKN successfully represented Charles Vista LLC, a registered broker dealer, and its owner, Gregg Lorenzo (the “Vista Defendants”) in a securities fraud claims brought pursuant to Section 10(b) and 20(a) of the Securities Exchange Act of 1934. The District Court dismissed the claims against the Vista Defendants on grounds that the Plaintiff failed to adequately plead securities fraud, specifically, that the group pleading doctrine did not apply to representations made in a private offering memorandum and that the qualified investors could not have reasonably relied on the alleged oral statements made by the Vista Defendants. The Second Circuit affirmed the District Court’s dismissal of the Amended Complaint, “…we conclude that (1) plaintiff failed to allege sufficiently that the Vista Defendants qualified as makers of the [private offering memorandum]… under Janus Capital Group v. First Derivative Traders, 131 S. Ct. 2296 (2011); and (2) any reliance by plaintiff… on the Vista Defendants’ oral representations was unreasonable….”

The GKN team included managing partner Martin Kaplan and partner Ryan J. Whalen.

See the Summary Order here.