Venable Back on Hook for $11.25M Facebook Con

By Cameron Finch, Bloomberg BNA

A group of investors that claimed it was swindled out of more than $11.25 million worth of pre-initial public offering Facebook shares won its bid to revive securities fraud claims against Venable LLP, which represented the alleged con artist during negotiations.

ESG Capital Partners LP adequately pled that former Venable partner David Meyer had the scienter — culpable intent — required under the Private Securities Litigation Reform Act, Judge Harry Pregerson of the U.S. Court of Appeals for the Ninth Circuit said July 11. The plaintiff also adequately pleaded state law fraud claims, but its ...