Firm Wins Summary Judgment for Broker Falsely Accused of Fraud

Several years ago, a disgruntled client, sour about losing money in a Broadway production, sued our client years after the alleged loss. We beat the case at FINRA when a panel of arbitrators granted our motion to dismiss. Unwilling to accept his defeat, the former client sued in the Supreme Court of the State of New York. After document discovery and depositions, we left no doubt that the plaintiff’s claim entirely made up, so we moved to throw out the case on summary judgment.

Judge Melissa Crane of the court’s Commercial Division heard oral arguments during which our adversary was forced to concede that his client had no evidence to support his claims. The court granted our motion in full, and the time to appeal has expired. So, finally, our client is free of the dark cloud hanging over his reputation.

In this case, justice was ultimately done. But so too was a grave reputational harm. Our client, an accomplished Broadway producer, lived for years with these patently, demonstrably false allegations. We are grateful for Judge Crane’s decision, and I am grateful for the contributions of my team, in particular Megan Craig and Abby Prinn, who worked tirelessly to ensure our client’s ultimate victory.

In the wake of the dismissal, Advisor Hub wrote about the win, quoting a part of my oral argument presentation:

“This has been a meritless stain on [Mannato’s] personal and professional reputation,” his lawyer, Kevin Galbraith of an eponymous firm in New York, told the judge. “It has cost my client very substantial legal fees and countless sleepless nights and, frankly…trauma within his family.”

Here is the decision, and here is the oral argument.

We all remember the fable of the tortoise and the hare. Here, the plaintiff tried his hand at being a hare, rushing ahead with a barrage of shifting lies. Together with our client, we steadily proceeded with a strategic plan that ultimately prevailed.

If you are a financial services professional who has been wrongly accused of unlawful conduct, please contact us for a free and confidential initial consultation. Write to us at inquiry@galbraith or call 212.203.1249.