Synthesis Energy Denied Early Exit From Investor Suit

Law360, New York (October 21, 2011, 2:46 PM EDT) -- Energy technology company Synthesis Energy Systems Inc. on Tuesday lost its bid to exit a California suit alleging it allowed a shell company to put an unwitting investor's money into a private placement offering, costing the investor millions.

U.S. District Judge Andrew J. Guilford found there were material questions of fact concerning whether SES knowingly conspired with an investment firm to use a shell corporation to access commercial real estate developer Igor M. Olenicoff's and his company Olen Properties Corp.'s money.

“Plaintiffs face a steep slope...
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