Party Sanctioned For Bringing Frivolous Claim Based On Dismissal of Similar Claims in Earlier Action
Commercial Case Notes / Securities

Party Sanctioned For Bringing Frivolous Claim Based On Dismissal of Similar Claims in Earlier Action

On June 3, 2026, Justice Reed of the New York County Commercial Division issued a decision in Cortlandt St. Recovery Corp. v. TPG Capital Mgt., L.P., 2026 NY Slip Op. 50868(U), sanctioning a party for bringing frivolous claims based on dismissal of similar claims in an earlier action . . . Continue reading Party Sanctioned For Bringing Frivolous Claim Based On Dismissal of Similar Claims in Earlier Action

Person That Signs Registration Statement Liable for Misstatements in it and Cannot Disclaim That Liability
Commercial Case Notes / Securities

Person That Signs Registration Statement Liable for Misstatements in it and Cannot Disclaim That Liability

On April 16, 2026, the First Department issued a decision in Glenmede Trust Co., N.A. v. Infinity Q Capital Mgt. LLC, 2026 NY Slip Op. 02330, holding that a person that signs a registration statement is liable for misstatements in it and cannot disclaim that responsibility . . . Continue reading Person That Signs Registration Statement Liable for Misstatements in it and Cannot Disclaim That Liability

PSLRA Stay Applies to Suits in State Court, But Does Not Extend to Appeals of Unsuccessful Motions to Dismiss
Commercial Case Notes / Securities

PSLRA Stay Applies to Suits in State Court, But Does Not Extend to Appeals of Unsuccessful Motions to Dismiss

On November 2, 2023, the First Department issued a decision in Camelot Event Driven Fund v. Morgan Stanley & Co. LLC, 2023 NY Slip Op. 05534, holding that a PSLRA stay applies in state court, but does not extend to appeals of unsuccessful motions to dismiss . . . Continue reading PSLRA Stay Applies to Suits in State Court, But Does Not Extend to Appeals of Unsuccessful Motions to Dismiss

Section 11 Plaintiff Not Required to Plead or Prove Loss Causation; Court Rejects Negative Causation Defense
Commercial Case Notes / Securities

Section 11 Plaintiff Not Required to Plead or Prove Loss Causation; Court Rejects Negative Causation Defense

On November 17, 2022, the First Department issued a decision in Kohl v. Loma Negra Compania Indus. Argentina S.A., 2022 NY Slip Op. 06553, holding that a Section 11 plaintiff was not required to plead or prove loss causation and rejecting a negative causation defense . . . Continue reading Section 11 Plaintiff Not Required to Plead or Prove Loss Causation; Court Rejects Negative Causation Defense

Purchasers in Secondary Public Offerings Had Standing to Assert Securities Act Claims
Commercial Case Notes / Securities

Purchasers in Secondary Public Offerings Had Standing to Assert Securities Act Claims

On May 2, 2022, Justice Borrok of the New York County Commercial Division issued a decision in City of Warwick Mun. Empls. Pension Fund v. Restaurant Brands Intl. Inc., 2022 NY Slip Op. 50337(U), holding that purchasers in secondary public offerings had standing to assert Securities Act claims . . . Continue reading Purchasers in Secondary Public Offerings Had Standing to Assert Securities Act Claims