January 8, 2013 – Crosby & Higgins LLP Successfully Opposes Motion To Dismiss in Connection with Securities Fraud Claims Pending in Federal Court
January 8, 2013
January 8, 2013 – Crosby & Higgins LLP is serving as lead counsel for an allegedly defrauded investor in the United States District Court for the District of Colorado (XeDAR Corporation v. Don Rakestraw 12-cv-01907-CMA-BNB). The investor, who was the co-founder of a marketing, strategic planning, and government services firm that was acquired by the Defendant corporation, has alleged a number of counterclaims, including for common law fraud, negligent misrepresentation, breach of contract, violations of section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934, violations of the Colorado Securities Act, and breach of fiduciary duty, arising out of the repurchase of the investor’s shares by the company in the days before the company was acquired. The investor seeks in excess of $1 million in compensatory damages, as well as punitive damages and attorney’s fees. Following an Order on the Motion to Dismiss in which the Honorable Christine M. Arguello held, among other things, that “as a matter of law, the Repurchase Agreement does not bar Rakestraw’s Counterclaims,” all but one of the investor’s claims survived and the parties are proceeding with discovery and preparing for trial which is expected to commence later this Spring. XeDAR Corporation v. Don Rakestraw, No. 12 Civ. 1907, 2013 WL 93196 (D. Colorado Jan. 8, 2013).