Case Status

The operative Complaint in this case was filed on May 8, 2015, in the United States District Court for the Southern District of New York (the “Court”). After the Plaintiffs filed the Complaint, the Defendants asked the Court to dismiss the case, asserting that the Complaint did not contain the allegations needed to support the Plaintiffs’ claims.

On December 7, 2016, the United States District Court for the Southern District of New York (Honorable Sidney H. Stein, Senior District Judge) issued a written opinion granting part of Defendants’ request, and denying other parts. Specifically, the Court sustained Plaintiffs’ claims that Defendants breached the contractual provision requiring Defendants to have a reasonable basis for believing that the investments they recommended were suitable for their customers. With its ruling, the Court allowed the Plaintiffs to proceed into the discovery phase of the case.

On January 13, 2017, following the Court’s decision on the Defendants’ motion to dismiss the case, the Defendants filed Answers to the Complaint.

The parties are currently engaged in the process of discovery. During the discovery process, each side is permitted to ask the other side for documents, testimony and other information related to the case. Pursuant to the Scheduling Order issued by the Court, the parties are scheduled to complete fact discovery by November 20, 2017. Class certification—the stage in the case at which the court decides whether the case can proceed as a class action—will be fully briefed by February 9, 2018.