NewOak Must Litigate Fraud Claims V. Applied: 2nd Circ.

Law360, New York (July 13, 2011, 4:55 PM EDT) -- The Second Circuit ruled Wednesday that NewOak Capital Markets LLC is contractually obligated to litigate rather than arbitrate fraud claims related to an $18 million securities offering it executed for weapons developer Applied Energetics Inc.

Overturning a district court decision that backed NewOak’s push for arbitration, the Second Circuit found that a superseding agreement between the parties designated the New York courts as the proper venue for any dispute arising from the 2005 private offering.

“We disagree with the district court’s conclusion that the engagement agreement’s...
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