Undertaking Need Not be Increased Because of Drop in Defendant’s Stock Price

On May 4, 2023, the First Department issued a decision in 180 Life Sciences Corp. v. Tyche Capital LLC, 2023 NY Slip Op. 02376, holding that an undertaking did not need to be increased just because the defendant’s stock price dropped, explaining:

Defendant also fails to provide adequate support for its alternative argument that the court should have modified the attachment order to provide for a larger undertaking. Defendant seeks to increase the bond from $50,000 to $3 million based solely on the fact that plaintiff’s stock price has declined, which it claims has resulted in millions of dollars in losses. The court did not improvidently exercise its discretion in refusing to increase the amount of the undertaking, as the bond was based upon a careful consideration of the evidence and plaintiff’s likelihood of success on its claims.

(Internal citations omitted).

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