New York small investors score victory in Assured Guaranty (UK), Ltd. v.
J.P. Morgan Investment Management, Inc.
As a follow up to our earlier blog dated August 1, 2011, on December 20, 2011 New York State Court of Appeals affirmed the order of the lower court dismissing the efforts of J.P. Morgan Investment Management, Inc., seeking a court determination that New York State’s Martin Act (General Business Law Art. 23-A) would preempt a victimized investor’s common law causes of action for breach of fiduciary duty and gross negligence.
In so holding, the Court held in Assured Guaranty (UK), Ltd. v. J.P. Morgan Investment Management, Inc.:
…we agree with plaintiff that the Martin Act does not preclude a private litigant from bringing a non-fraud common-law cause of action (decision), also noting “an injured investor may bring a common law claim (for fraud or otherwise) that is not entirely dependent on the Martin Act for its viability.”
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