U.S. Second Circuit - The FindLaw 2nd Circuit Court of Appeals Opinion Summaries Blog

Constitutional Challenge to Liens Placed by City, and Securities Fraud Matter

In Chase Grp. Alliance LLC v. N.Y. Dep't of Fin., No. 09-2327, an action claiming that plaintiffs' right to due process was violated by liens placed upon their properties by the City of New York, the court affirmed the dismissal of the action where the complaint alleged that New York law afforded appellants a right to notice and access to a tribunal to assert their objections before the liens were imposed, and thus, appellants' right to due process was not violated.

In Iowa Pub. Employees' Ret. Sys. v. MF Global, Ltd., No. 09-3919, an action alleging material misstatements and omissions in a prospectus and registration statement of defendant, and asserting claims under section 11, 12(a)(2), and 15 of the 1933 Securities Act, the court affirmed in part the dismissal of the complaint, holding that the stock price decline (and plaintiffs' resulting losses) could not be attributed to the prospectus's failure to disclose an alleged fact.  However, the court vacated in part where the district court erroneously applied the bespeaks-caution doctrine.

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