Brokerage Can Be Sued Over Securities Deal: Texas Court

Law360, New York (August 9, 2011, 6:14 PM EDT) -- A Texas state appeals court on Tuesday allowed an investment group to sue the alleged brokerage in failed securities transactions for negligently supervising an employee's work in handling the purchase of Lexico Energy Exploration Inc. stock.

Narnia Investments Ltd. had sued brokerage firm Harvestons Securities Inc. in Texas court for deceptive trade practices, gross negligence and fraud, arguing the firm was liable for the deal for negligently supervising employee James Sanderson, who allegedly worked on the deal in the Lexico Energy stock transactions.

In the trial...
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