Victory | ASSURED GUAR. (UK) LTD. v. J.P. MORGAN INV. MGT. INC. – Private Actions Are Not Precluded Under Martin Act, Panel Decides

Private Actions Are Not Precluded Under Martin Act, Panel Decides

ALBANY – A decade after Attorney General Eliot Spitzer dusted off the long dormant Martin Act and deployed it to become the “Sheriff of Wall Street,” the Court of Appeals has essentially deputized private citizens in holding for the first time that common-law tort claims are not preempted by the law.

In affirming the Appellate Division, First Department, yesterday, the Court of Appeals doused what had been conventional wisdom in other state and federal courts, and handed a significant consumer victory to investors and current Attorney General Eric T. Schneiderman.

“Today’s decision is an important recognition that private lawsuits brought by harmed investors are compatible with our office’s public enforcement role under the Martin Act,” said Jennifer Givner, a spokeswoman for the attorney general. “As the Court’s decision reflects, the purpose of the Martin Act is in no way impaired by private legal claims, since actions by the Attorney General and harmed investors both further the same goal: to fight fraud and deception in the securities marketplace.”

Rest here…

Copy of the ruling below…

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4closureFraud.org

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ASSURED GUAR. (UK) LTD. v. J.P. MORGAN INV. MGT. INC.

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