Simmons Hanly Conroy Obtains Favorable Securities Fraud Ruling on Behalf of Venture Capital Investment Firms

Simmons Hanly Conroy represents two venture capital investment firms in a securities fraud action arising from their investment in a medical device company. The defendant, the former CEO of the medical device company, moved for summary judgment, but United States District Judge Louis Stanton denied the motion, holding that the evidence was sufficient to justify a jury in concluding that the defendant had made misstatements or omissions of material facts; that the defendant had acted in bad faith or with intent to deceive; that the investment firms had justifiably relied on the misstatements and omissions; and that the misrepresentations and omissions had proximately caused the investments to become worthless.

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