NEW YORK, May 03, 2021 (GLOBE NEWSWIRE) -- On May 3, 2021, Sichenzia Ross Ference LLP (“SRF”), on behalf of its clients, CodeSmart Holdings, Inc. (“CodeSmart”) and Sharon Franey, won an appeal brought by certain investors in CodeSmart (together, the “Investors”) before the United States Court of Appeals for the Second Circuit, which affirmed a lower Court’s dismissal of the Investors’ lawsuit. The Second Circuit’s decision represents a major victory for SRF and its clients after extensive motion practice in a case that has been pending since 2014.
The Investors brought direct claims against Ms. Franey, alleging, among other things, that she negligently misrepresented material facts in connection with a private placement. The Investors, as shareholders of CodeSmart, also brought derivative claims against Ms. Franey on behalf of CodeSmart, alleging that Ms. Franey breached her fiduciary duty to CodeSmart. The Investors sought unspecified damages, punitive damages and their attorneys’ fees arising from these claims.
After full briefing and oral argument, the Second Circuit affirmed the dismissals that SRF obtained in the United States District Court for the Southern District of New York. At the District Court level, SRF obtained a dismissal of the operative complaint as well as a denial of leave to amend as sought by the Investors.
The SRF team was led by Litigation Partners Michael H. Ference and Sameer Rastogi, and Litigation Associate Thomas McEvoy. The appeal was argued by Mr. Rastogi.
The Second Circuit’s complete decision can be found at Capital v. CodeSmart Holdings, 2021 U.S. App. LEXIS 10201 (2d Cir. Apr. 9, 2021).
About Sichenzia Ross Ference LLP
SRF is a full service law firm with a nationally recognized corporate, securities and litigation practice that provides experienced representation in all matters involving the securities industry. In addition to handling routine to complex commercial matters, SRF’s renowned litigation department specializes in defending companies and individuals against all types of securities cases, including class action lawsuits, shareholder derivative actions, and matters involving allegations of fraud, misrepresentation or other securities violations. The litigation team has also brought defamation lawsuits against companies and individuals related to market manipulation.
The firm also represents individuals and companies in investigations by the Securities and Exchange Commission (SEC) and other regulatory bodies. The litigation team has a robust practice representing brokers and broker-dealers in arbitrations before the Financial Industry Regulatory Authority (FINRA). These arbitrations typically involve claims of unsuitability, churning, unauthorized trading and other allegations of broker misconduct. Finally, SRF has a burgeoning expungement practice, where it represents brokers seeking to have negative and harmful customer complaints removed from their industry records. The firm complements its core practice areas with an established commercial real estate and trusts and estates practice.
Media Contact: marketing@srf.law