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Fraud Suit Over Unilateral Trading Can Proceed, Judge Says

Law360 (March 2, 2018, 10:24 PM EST) -- An Illinois federal judge on Thursday advanced a securities fraud suit from some of an investment club’s partners over allegedly unlawful unilateral trades that wiped out their funds, rejecting the founder’s argument that the club wasn’t formed with an investment contract constituting a security.

U.S. Magistrate Judge Young Kim rejected Narayanan Swaminathan’s argument that the expectation from AlphaTigers Capital LLC’s partners that they would profit from their own decision-making pursuant to the club’s operating agreement, instead of his trading efforts, disqualifies the club’s formation as a...
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Case Information

Case Title

Santore et al v Swaminathan

Case Number



Illinois Northern

Nature of Suit



Honorable Young B. Kim

Date Filed

August 7, 2017

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