RRD Partner Rob Laney Obtains Dismissal of $4M Investment Fraud Case

October 27, 2011

Second Circuit Affirms Judgment of Dismissal

RRD partner Rob Laney successfully defended a lawsuit brought against the former vice president of corporate finance and in-house counsel alleging fraud, misrepresentation and breach of fiduciary duty and seeking the return of a $4 million investment together will millions more in interest and penalties. 

The firm's client was sued for the depletion and misappropriation of the investment despite a written non-depletion agreement and the promise of significant profits within a short period of time. Shortly after the investment was made, however, the investment bank wrongfully transferred the funds and eventually transferred it to a number of offshore accounts. The plaintiff obtained a judgment in its favor against the investment bank for over $10 million that proved uncollectible, resulting in the plaintiff eventually filing suit against the firm's client. 

Rob obtained a dismissal of the case in the United States District Court in March 2010 on the basis that the statute of limitations on all claims had expired prior to the institution of suit. The disrict court also concluded that no equitable tolling doctrines applied, despite the plaintiff's claim that it was "lulled" into not filing suit earlier by a number of misrepresentations by the firm's client. 

On July 15, the Second Circuit Court of Appeals affirmed the dismissal in a unanimous decision. This is Rob's fifth successful appeal in the Second Circuit and 18th appellate victory out of 19 cases handled before the Second Circuit and the Connecticut Supreme and Appellate courts.