NY Martin Act Ruling Could Weigh On Corporate Transactions

Law360, New York (November 21, 2012, 8:01 PM EST) -- New York’s highest court has ruled that the state’s sweeping anti-financial fraud law applied to a proposed housing privatization deal despite the lack of a share offering, a move experts said could open corporate transactions across industries to onerous registration and prospectus requirements.

Judge Victoria A. Graffeo's Nov. 16 opinion, which was joined by the entire New York State Court of Appeals, disregarded the argument that the Martin Act should not apply because the now-shelved privatization of the 746-unit, six-building East Midtown Plaza complex did not...
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