According to the complaint filed June 14, 2010, the Defendants induced plaintiff and the members of the Class to invest millions of dollars in the Stewardship Fund by representing that they were expert and experienced in the development and structuring of complex and substantial financial transactions, and that they would cause the Stewardship Fund to use the funds invested by plaintiff and the Class to purchase a widely diversified portfolio including secured notes, investment-grade bonds, municipal bonds and other similar securities.
Instead, the Defendants recklessly invested the bulk of the Stewardship Fund's assets with a convicted felon and his affiliates, and recklessly invested other funds in imprudent investments including loans that were based on hugely inflated, false and negligent appraisals by the Appraiser Defendants.
The defendants filed several motions to dismiss the complaint on October 15, 2010. On October 22, 2010, the judge granted the plaintiff the motion to file an amended complaint, and further dismissed the three pending motions to dismiss without prejudice to renewal.
On October 28, 2010, Judge Mark R. Kravitz granted in part and denied in part the motion for appointment as lead plaintiff and lead plaintiff’s selection of lead counsel. The Court appointed Poptech LP, as Lead Plaintiff and approved Poptech's selection of Shepherd, Finkelman, Miller & Shaw as Lead Counsel.
On December 13. 2010, the lead plaintiff filed an Amended Complaint, amending the defendants and the claims in the action. The defendants responded by filing several motions to dismiss on February 14, 2011. On April 29, 2011, Judge Mark R. Kravitz denied the defendants' motions to dismiss. The defendants consented to the filing of Plaintiff Poptech, LP's proposed Second Amended Complaint.
On May 2, 2011, the plaintiff filed a Second Amended Complaint. The defendant responded by filing motions to dismiss on May 2, May 23, and June 3. Oral arguement has been set for February 2, 2012.
On August 7, 2013, the plaintiffs reached a Settlement Agreement with an individual defendant. On August 22nd, a Settlement Agreement was reached with additional Defendants. On December 2nd, a Settlement Agreement was entered with another individual defendant.