The plaintiffs invested $50 million in a Russian oil and gas joint venture, relying on representations made by the defendants regarding the involvement of another major investor and the status of the corporate vehicles.
The plaintiffs later discovered that the corporate vehicles were sham public companies, the other investor had not funded its portion, and the defendants had engaged in stock manipulation and unauthorized issuance of free-trading shares.
The plaintiffs sued for deceit, breach of fiduciary duty, and unlawful conspiracy.
The defendants counterclaimed for breach of contract, inducing breach of contract, and malicious prosecution.
The Superior Court of Justice found several defendants liable for fraudulent misrepresentation, breach of fiduciary duty, and conspiracy, awarding substantial damages to the plaintiffs.
The defendants' counterclaim was dismissed in its entirety.
