Two recent appellate court decisions from Georgia and New York demonstrate the current divergence between a number of US states regarding whether holders of securities can maintain a cause of action related to alleged fraud and negligent misrepresentation (holder claims). With its recent decision, Georgia joins a handful of other states, including California, Massachusetts, Wisconsin, New Hampshire and New Jersey, that have recognized holder claims, while a New York state appellate court cast doubt on the viability of holder claims.

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