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

Q&A: Filippo Pignatti Morano On The Ultimate Alternative Investment...Classic Cars

Jan 29 2015 | 12:37pm ET

In 2011, Filippo Pignatti Morano launched a fund to invest in classic cars. FINalternatives...

Lifestyle

Looking For A Hedge Fund Manager? Try Davos

Jan 28 2015 | 8:48am ET

Davos, Switzerland seems to have become the hedge fund capital of the world—at...

Guest Contributor

From Switzerland With Love: Some Hard Truths About Central Banks And Risk

Jan 23 2015 | 7:54am ET

In the wake of the Swiss National Bank uncoupling the country’s currency from...

 

Editor's Note