Securities brokerage IDX Capital LLC and its officers have won an $8.25 million judgment against a former business associate convicted of sabotaging a $25 million merger deal by sending the would-be buyer disparaging emails under pseudonyms, including the comic book character Daredevil.
New York County, N.Y., Supreme Court Justice Jeffrey Oing, who presided over a jury trial, entered the judgment earlier this month.
The complaint alleges that Wesley Wang learned of Knight Capital Group’s interest in buying IDX and responded by sending at least 12 anonymous emails disparaging ex-partner James Cawley. The emails were sent using false names, including that of Matt Murdock, the alter ego of Marvel Comics’ Daredevil, and World War II heroine Anne Frank.
Indian Automaker Faces Fraud Claims
A federal judge in Atlanta will allow fraud claims by five U.S. auto dealers to proceed against the U.S. subsidiary of India’s largest automotive manufacturer in a suit stemming from a failed deal to sell Indian-made sport utility vehicles and pickups in the United States.
The dealers claim that Mahindra U.S.A. and parent Mahindra & Mahindra Ltd. lured them into paying millions for the rights to sell vehicles that were never shipped to the United States because they did not pass U.S. emissions and safety standards.
But while allowing the case to proceed, Judge Thomas Thrash Jr. characterized the dealers’ claim that Mahindra never intended to enter the U.S. market "a seemingly inexplicable course of conduct" for which the dealers had offered "no motive."
Media Company Survives Fraud Lawsuit
A Washington, D.C., federal judge on March 19 dismissed a securities fraud lawsuit against the Wash­ington Post Co., finding that the plaintiffs failed to sufficiently allege that executives intended to deceive the market about the financial health of for-profit education subsidiary Kaplan Inc.
The ruling was the latest in a string of defeats for dissatisfied investors suing over the workings of for-profit education institutions, U.S. District Senior Judge Barbara Rothstein noted in her opinion.
The plaintiffs were represented by Robbins Geller Rudman & Dowd, which has pursued securities fraud cases against other for-profit education institutions in light of growing scrutiny over their recruitment and financial aid practices.