- Category
- Defining Matters
- Date
- Feb. 28, 2018
- Title
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Kramer Levin Defeats Securities Class Actions for MGT Capital Investments
Kramer Levin won a complete victory for MGT Capital Investments Inc. by securing dismissal with prejudice of a series of securities fraud class actions brought against the company and its officers. MGT was delisted from the NYSE MKT exchange in late 2016, and multiple shareholder plaintiffs filed a series of lawsuits alleging that the company and its officers failed to disclose material facts prior to its delisting, including that it was likely to be delisted. In August 2017, MGT moved to dismiss the cases, arguing, among other things, that the securities laws require disclosure of facts and risks, but they do not require companies to make negative predictions as to what regulators will do in the future. After hearing oral argument earlier in February, Southern District Judge Naomi Reice Buchwald dismissed the case with prejudice, reasoning that “any further leave to amend would be futile.”
Related People
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Jeffrey W. Davis
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- Partner
- General Counsel
- New York
- vcard
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Karen Steinberg Kennedy
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- Special Counsel
- New York
- vcard
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