To recover against fraud, a plaintiff generally needs to prove that a defendant made a false statement that was either knowingly or recklessly made. The law of fraud can apply to ordinary business contracts, as well as investments such as stock transactions. In the world of start-ups or other risky ventures, all parties need to be aware of the liability (personal and corporate) that can arise in connection with representations relating to investment risk. A sometimes-related concept is fiduciary duty, which (unlike ordinary business relationships), involves a duty of high loyalty owed from one person to another. These cases often involve the improper actions of officers and directors of a corporation as they relate to shareholders or creditors.
Representative Cases
In one of our plaintiff cases, we obtained recovery for a law firm against the directors of a client, where the client had repeatedly sought legal services while the client corporation was insolvent. When the corporate client refused to pay for its services, we were able to recover from the directors, personally.
Successfully obtained recovery for an early-stage investor in a company that was in the process of going public, arising out of false promises made to induce the investor to advance funds to the company.
Founder Disputes
Backed by our experience in the Silicon Valley start-up environment, LexAnalytica, PC successfully represents parties involved in founder disputes. In the excitement and fog of starting a business, parties often fail to memorialize their founding arrangements, sometimes resulting in disputes over the assignment of intellectual property or share ownership.
Representative Cases
In one California case, we successfully represented defendants in defeating all of the ownership claims made by their alleged business partner, a very successful entrepreneur in the Silicon Valley. Moore v. Bebe au Lait, LLC, No. 11-cv-176639 (Superior Court of Santa Clara County, filed July 12, 2010). Fully affirmed on appeal, Appeal No. H-037266 (6th Dist.)
Successfully represented a social media start-up in federal litigation in New York, where a purported co-founder was seeking over $10m. Case settled favorably and plaintiff did a walk-away.
Represented a co-founder plaintiff in a pre-litigating matter, resulting in the plaintiff obtaining a sizeable settlement.
Trade Secrets
Representative Cases
Obtained precedent-setting orders in federal trade secret case on behalf of plaintiff against plaintiff’s former law partner, whereby all of defendant’s computer files were cloned on suspicion that defendant had misappropriated trade secrets. Mahamedi v. Paradice, Case No. 16-cv-2805 (N.D. Cal., filed May 24, 2016).
In our defense practice, we have successfully represented clients in both liability and damages aspects of trade secret cases. In one challenging liability case, a plaintiff seeking more than $10 million from our client in compensatory damages alone was awarded less than 2% of their demand. PQ Labs, Inc. v. Zaagtech, Inc., Case No. CV-12-450 (N.D. Cal. Filed Jan. 27, 2012).
Obtained judgment against AMD on behalf of plaintiff client in Business Applications Performance Corporation v. Advanced Micro Devices, No. 111-CV-203837 (Santa Clara County Sup. Crt., filed June 27, 2011).
Represented plaintiff in Entrust Administration, Inc. v. Davise, No. 06-CV-06427-JW (N.D. Cal. filed Oct. 13, 2006). Obtained judgment and permanent injunctions against defendants.
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