David Ferrell and Kevin Rust of Vandeventer Black LLP’s Raleigh, North Carolina office recently obtained a complete dismissal of a plaintiff’s securities fraud case at the summary judgment stage in federal court, Eastern District of North Carolina. The plaintiff claimed the broker that sold her certain annuity products had promised certain guaranteed returns if she purchased the annuity products. Based on these allegations, the plaintiff sued not only the broker, but the annuity company as well. The plaintiff contended that she was entitled to over $1.2 million in damages.
The plaintiff’s claims were based not only upon an alleged violation of SEC Rule 10b-5, which regulates sellers of securities, but also a federal claim under the Investment Advisers Act of 1940. The plaintiff also brought, among others, state law claims under the North Carolina Securities Act, the North Carolina Investment Advisers Act, violation of Chapter 58 of the North Carolina General Statutes (relates to suitability of annuities), breach of the duty of good faith and fair dealing, breach of fiduciary duty, fraud, negligence, and negligent inflection of emotional distress. In total, the plaintiff brought twelve separate claims against the annuity company and its broker.
David and Kevin successfully had three of the claims dismissed in total prior to filing an answer, and two of the claims dismissed in part, which significantly limited the scope of the case to whether the broker told the plaintiff that there would be a guaranteed return on her investments.
Through discovery, David and Kevin were able to successfully elicit favorable evidence and testimony that made summary judgment a viable option. As a result of David and Kevin’s efforts, the Court dismissed the remaining nine claims against the broker and the annuities company at the summary judgment stage of the litigation. This was especially important because the parties were not close in their settlement discussions and a trial seemed likely.
The Court’s option can be viewed by clicking here. For more information about the case or the successful legal defenses raised or for copies of David and Kevin’s briefs filed in this matter, please contact David Ferrell or Kevin Rust at 919-754-1171.
You must read and accept these terms in order to send us email.
Use of this website for communication does not constitute or create an attorney-client relationship for any legal matter for which we do not already represent you. Please do not send any confidential or privileged information electronically via this website unless we have already agreed to represent you.
If you send us information electronically via this website, you agree that our review of that information, even if you submitted it in a good faith effort to retain us, and, further, even if it is highly confidential, does not preclude us from representing another client directly adverse to you, even in a matter where that information could and will be used against you.