Felix Investments Suit Vs. SecondMarket Over Facebook IPO Dismissed By N.Y. State Appeals Court

By David Cohen 

Another lawsuit related to Facebook’s bungled initial public offering bit the dust, as a New York state appeals court Tuesday dismissed a suit by Felix Investments against online marketplace SecondMarket.

Reuters reported that the New York Appellate Division, First Department, ruled that the Facie Libre entities controlled by Felix Investments could not bring a claim of intentional misrepresentation against SecondMarket, reversing a decision last August by Manhattan Supreme Court Justice Shirley Kornreich, who dismissed the bulk of the case but allowed the misrepresentation claim to move forward.

The five-judge panel of the New York Appellate Division, First Department wrote, as reported by Reuters:

Dismissal of the negligent misrepresentation claim is warranted because plaintiffs failed to allege any out-of-pocket loss as a result of the subject transaction, as opposed to lost profits.

SecondMarket spokesman Mark Murphy said in a statement, as reported by Reuters, that the company was “thrilled with the result,” adding:

We stated at the outset that these allegations were completely without merit, and now two separate courts have supported our position and all claims have been dismissed.

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