Oak Investment Can't Kill $11M Suit Over 'Fraudster' Partner

Law360, New York (June 17, 2019, 6:37 PM EDT) -- A New York state court judge on Monday cast aside a bid by venture capital fund Oak Investment Partners to escape a bankrupt e-commerce company's fraud lawsuit blaming it for the actions of a former Oak partner-turned-fugitive, ruling that issues of fact remained.

After hearing arguments from Oak and Tracy Klestadt, the estate administrator for now-defunct Choxi.com on behalf of investors, Justice Barry R. Ostrager reasoned that the disputed facts would keep the case alive, but decided to toss a negligence claim for lack of specified conduct.

The Choxi investors are suing to recover damages from Oak, alleging that it failed to...

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