Congratulations to Scott Atherton and Terry Mullen for obtaining a dismissal with prejudice of state and federal securities fraud claims asserted by an institutional investor against the Founder, Chairman and CEO of a public company. Those purported securities fraud claims arose from alleged misrepresentations regarding the value of the public company’s intellectual property, forward looking revenue projections, and manufacturing capabilities. The U.S. District Court for the Southern District of Florida ruled that the plaintiff could not establish loss causation or otherwise connect declines in the company’s stock price to the misrepresentations the plaintiff alleged.
