HA 2003 Liquidating Trust v. Credit Suisse Sec. (USA) LLC, No. 06-3842 (February 20, 2008)
In a suit by a trust set up to collect money for a bankrupt company’s creditors against an investment banker that advised the company during a disastrous deal, judgment for defendant is affirmed where the investment banker was not grossly negligent in issuing a fairness report approving of the deal since it relied on inaccurate numbers provided by the company, and was under no contractual duty to revise its report after technology stocks began an industry-wide downturn.
Schaaf v. Residential Funding Corp., No. 06-3694 (February 22, 2008)
In an action brought by certain investors asserting violations of the Minnesota Consumer Fraud Act (MCFA) and claims of common law fraud and unjust enrichment, dismissal of plaintiffs’ claims is affirmed where the investors failed to plead a sufficient causal nexus between their financial losses and the allegedly fraudulent actions of defendants.