LLFW Prevails on Appeal: Second Circuit Upholds Dismissal of Fraud Claim.

On June 29, 2010, LLFW won an appeal to the United States Court of Appeals for the Second Circuit. In its decision, the Circuit Court affirmed the dismissal of a complaint against LLFW's client, a money center investment bank. The complaint asserted claims for aiding and abetting fraud, commercial bad faith, breach of fiduciary duty and negligence, among others, based on allegations that the defendants failed to protect the plaintiff against a fraud allegedly perpetrated by a third party.

The Second Circuit held that the complaint failed to allege facts to link the defendants to any fraud by the third party, and affirmed the dismissal of the remaining claims based on the "thoughtful and well reasoned" opinion of the United States District Court for the Southern District of New York.

The District Court agreed with LLFW's arguments that the bank could not be held liable on any of the theories advanced by the plaintiff for a fraud allegedly perpetrated by a bank customer who pretended to be running an investment program for the plaintiff, who was not a bank customer.

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