Stay current on changes and developments in corporate law with a wide variety of resources and tools.
By Che Odom
Dec. 15 — A federal judge Dec. 9 denied a motion to dismiss fraud claims against Boston-based Nixon Peabody LLP in a multimillion-dollar securities lawsuit filed by an investor who alleged he was lured into a Ponzi-like scheme by the law firm and an unlicensed broker.
Judge David Hurd of the U.S. District Court for the Northern District of New York rejected Nixon Peabody's argument that the plaintiff, Andrew Goldberg, put the defendants at a disadvantage by taking too long to amend his complaint, originally filed in April.
Hurd denied the motion to dismiss without prejudice, so the firm may be able to file it again on the amended complaint.
Nixon Peabody told Bloomberg BNA in an e-mail Dec. 15 that allegations the firm conspired to defraud investors “have no merit.”
“We continue to cooperate fully with the government's investigation in this matter,” the firm said.
Goldberg and another plaintiff—investor William McEssy, who filed a separate action Dec. 9—alleged the law firm and a group of investment funds led by Gregory W. Gray raised nearly $20 million by misleading at least 140 investors throughout the U.S. and abroad. The plaintiffs alleged that the law firm and Gray hid the fact that Gray had been sanctioned by the Financial Industry Regulatory Authority and the New York Stock Exchange and lost his license years earlier.According to the complaints, Archipel Capital LLC, BIM Management LP and other related entities failed to maintain separate bank accounts and commingled funds between themselves “as they wished.” The complaints also asserted that Nixon Peabody, as legal adviser to Gray, made wholesale misrepresentations that prevented investors from “knowing the real truth about the investments” and about Gray.
The Securities and Exchange Commission has an ongoing action against Gray over the alleged Ponzi scheme in the U.S. District Court for the Southern District of New York (40 DER EE-18, 3/2/15).
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)