LWS Wins Dismissal of Securities Fraud Lawsuit

July 8, 2013

July 8, 2013 – After extensive briefing and oral argument, Judge Barbara Lynn of the U.S. District Court for the Northern District of Texas accepted arguments urged by LWS on behalf of its client, HEI Resources, Inc., and dismissed a securities lawsuit against the company, its affiliates and other parties.  The plaintiffs contended that they invested millions of dollars in joint ventures sponsored by certain of the defendants based upon misrepresentations and omissions, and they claimed that the joint ventures were unregistered securities.  The plaintiffs initially filed suit in Colorado state court and were dismissed by the trial court based upon forum selection clauses contained in the parties’ contracts.  Ultimately, the Colorado Supreme Court upheld the dismissal.  Thereafter, the plaintiffs re-filed their case in Texas federal court.  LWS moved to dismiss the suit based on the expiration of the statute of limitations.  Despite a vigorous effort by the plaintiffs to assert the applicability of numerous statutory and equitable tolling doctrines, Judge Lynn adopted LWS’s reasoning in its client’s Motion to Dismiss and granted Final Judgment against the plaintiffs.  Andy Szygenda served as lead counsel in the case.  A copy of Judge Lynn’s opinion can be found at Mathers Family Trust, et al. v. HEI Resources, Inc., et al., No. 3:13-cv-01035-M, 2013 U.S. Dist. LEXIS 95019 (N.D. Tex. July 8, 2013).

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