LOS ANGELES, Sept. 23, 2009 (GLOBE NEWSWIRE) -- On July 28, 2009, following an eight day trial in Los Angeles Superior Court, the jury returned a verdict finding Wedbush Morgan Securities, Inc. liable for securities fraud in the sale of preferred stock to Alex Meruelo and Meruelo Capital Partners LLC in February of 2005. The plaintiff was represented at trial by Ken Catanzarite of the Catanzarite Law Corporation and Laurence Rosen of the Rosen Law Firm. As a result of the verdict, the trial court has entered judgment in the amount of $3.3 million in favor of plaintiff, less a credit for $1.0 million paid in settlement by a co-defendant.
At trial, the plaintiff contended that Wedbush Morgan assisted in the sale of Dwango North America, Inc. preferred stock by providing written financial and business information that was materially false and misleading. The defendant admitted the information was misleading, but claimed it had corrected the false statements in a telephone conversation with plaintiff a few days prior to the stock sale. When asked about the verdict, Ken Catanzarite explained, "The jury didn't believe Wedbush's kitbag of excuses. These folks knew that any correction would have been in writing. Why would the defendant provide false written information, only to correct it on a telephone call? Not only that, defendants managed to lose or destroy all written evidence of the purported phone call. Wedbush's story didn't make any sense."
Attorney Laurence Rosen stated that, "Banks and brokerage houses that commit securities fraud should know that justice still resides in our court system. We won't hesitate to take these cases to trial."
About The Firms:
The Catanzarite Law Corporation, based in Orange County, California, represents plaintiffs in business litigation disputes, including securities litigation. The firm also represents investors in securities fraud and corporate misconduct cases throughout the United States. To contact Ken Catanzarite, please call (714) 520-5544.
The Rosen Law Firm, based in New York City, represents investors that fall victim to securities fraud and corporate misconduct throughout the United States. The Rosen Law Firm is dedicated exclusively to recovering investment losses for investors in public and private companies that have misrepresented material aspects of their business or whose officers and directors have breached their fiduciary duties to shareholders. Investors with questions concerning their losses in any particular investment are encouraged to contact the firm for an evaluation of their claim at no cost. Visit www.rosenlegal.com or call (212) 686-1060.