Foley Obtains Directed Verdict for Client in Securities Fraud Case

16 February 2023 News

Foley & Lardner LLP announced today that after more than four years of contentious litigation and a five-week jury trial, a California judge granted nonsuit, the California equivalent of a judgment as a matter of law, in favor of the firm’s client Fusion Capital Management (Fusion). The plaintiffs accused Fusion of defrauding them out of their securities and participating in a conspiracy to manipulate senior citizens into purchasing annuities.

Fusion is a Registered Investment Advisory (RIA) firm with advisers across the country. One of the advisers in California recommended the plaintiffs sell some of their securities and purchase annuities as part of a diversification plan. The plaintiffs subsequently became unsatisfied with the annuities, accusing the adviser of manipulating them into selling their securities to obtain a high commission.

The plaintiffs sued Fusion as the RIA, the annuity company, the national marketing organization, the adviser, and the adviser’s independent business. The plaintiffs’ damage model exceeded $70 million, with claims that included the trebling of damages, attorneys’ fees, and potentially punitive damages.

On February 9, 2023, following a five-week jury trial, the court granted Fusion’s nonsuit, finding that there was not sufficient evidence to present the case against Fusion to the jury.

The Foley team included Partners J. Michael Thomas, Robert Slovak, Benjamin Morris, and Associate Stephanie McPhail.

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