Safe Harbor Doesn't Protect Tech Co.'s Fraudulent Statements

Law360, New York (September 6, 2013, 9:38 PM EDT) -- A New Jersey appellate panel upheld a $502,000 judgment Thursday against the principal of a defunct technology company who defrauded investors by falsely claiming relationships with Hewlett-Packard Co. and others, ruling the judge did not errantly apply securities law to the case.

A two-judge panel on the Superior Court of New Jersey’s Appellate Division upheld a judgment for Kenneth Gruber and Murray Gruber, who invested a combined $300,000 with Alan S. Kaplan and his firm Xactis Corp. The Grubers sued Kaplan to recoup their investments and...
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