Yorkville Cleared—Again—In Stock Fraud Suit

Aug 9 2013 | 10:28am ET

Hedge fund Yorkville Advisors has fended off a lawsuit accusing it of scheming against a pharmaceutical company.

A federal judge in New Jersey dismissed the complaint, filed by investors in Cobalis Corp. U.S. District Judge Dennis Cavanaugh ruled that the matter had already been litigated to no avail and that the investor suit was simply "another bite at the apple."

"Cobalis and its privies, plaintiffs, have had multiple opportunities to litigate this very issue, with two federal judges determining that they have no claim upon which relief can be granted," Cavanaugh wrote. "It is improper and a waste of judicial resources to continue to entertain this issue, even when it is refashioned as a claim by the privies of the corporation and not the corporation itself."

Cobalis, which makes an over-the-counter dietary supplement designed to treat allergies, accused Yorkville of shorting Cobalis' stock to drive its drive down while also entering into a private investment in public equities transaction in which the Radovich family, which runs Cobalis, pledged stock as collateral.

"We are pleased with Judge Cavanaugh's opinion dismissing yet another baseless litigation brought by the Radovich family and its various entities," Yorkville lawyer Nikolas Komyati told Law360.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…