Firm Secures Second Circuit Affirmance on Behalf of Hedge Fund in Breach of Contract Case
On April 20, 2020, the Firm secured a significant victory when the U.S. Court of Appeals for the Second Circuit affirmed the dismissal of all claims against our hedge fund client. The action had been brought in Florida state court by the former CEO of a publicly traded company in which the fund invested, asserting claims for fraud and breach of contract related to a private investment in public equity (PIPE) transaction. The Firm secured a transfer to the U.S. District Court for the Southern District of New York where the court granted a motion to dismiss all claims against our client, holding that our client’s actions in hedging its investment in the company were consistent with the terms of the operative contracts and that there was no basis for a fraud claim. The plaintiff appealed, attacking the merits of the district court’s ruling and arguing that the claims could not be resolved at the pleading stage. The Second Circuit rejected all of the plaintiff’s arguments and unanimously affirmed the district court’s ruling.
To read the court’s decision, click here.