Securities Law Blocks Mare Breeding Suit: Bank

Law360, New York (July 14, 2011, 7:16 PM EDT) -- Wilmington Trust FSB argued Wednesday that federal securities law bars a $12 million fraud suit in the multidistrict litigation over an alleged a horse-breeding scam run by ClassicStar LLC owner GeoStar Corp.

In a motion to dismiss, Wilmington Trust said Sea Song Farms LLC and its owners, Lewis and Linda Teffeau, improperly brought their amended complaint under the Racketeer Influence and Corrupt Organizations Act when in fact the suit was a fight over a securities transaction. Given that, the complaint is barred by the Private Securities...
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