MJK Clearing, Inc. : Secured Demand Notes Securities Litigation
On or around 07/01/2003 (Date of order of final judgment)
Filing Date: September 25, 2002
On November 22 and 25, 2002, the defendants filed two separate motions to dismiss. On July 1, 2003, the Court entered the Memorandum, Opinion, and Order signed by U.S. District Judge John R. Tunheim granting the defendants’ motions to dismiss the complaint. The complaint was dismissed with prejudice and Judgment was entered.
According to a Press Release dated 9/27/02, MJK Clearing raised more than $25 million from its sales to investors of the Secured Demand Notes. The complaint alleges that the sales of the Secured Demand Notes were in violation of sections 12 and 15 of the Securities Act of 1933 (the "Securities Act"). Due to such violations, as the complaint alleges, the action seeks recission and compensatory damages.
NOTE: Claims for violations of the Securities Act are asserted against MJK's senior officers, members of MJK's Board of Directors and MJK brokers who sold the Secured Demand Notes. MJK Clearing is not named as a defendant because it is subject to the protection of "automatic stay" under the bankruptcy code.
Company & Securities Information
Defendant: MJK Clearing, Inc.
Industry: Computer Services
Headquarters: United States
Ticker Symbol: N/A
Company Market: Privately Traded
Market Status: Privately Held
About the Company & Securities Data
"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.
In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.