RELATED: Aposteloses may plead in court this week
The suit filed by lead plaintiffs Dr. Rafael M. Cruz, Dr. Gloria Cruz and Dr. Rafael F. Cruz sought at least $30 million in damages.
Rose wrote in his ruling earlier this month that, “The specific issue raised by Defendants’ Motion to Dismiss is whether — reading the Complaint in the light most favorable to Plaintiffs — Plaintiffs plausibly allege that Defendants participated in or assisted the Aposteloses in the sale of unregistered securities. The Court concludes that Plaintiffs have not done so.”
Rose wrote that he recently dismissed a nearly identical complaint (Boyd v. Kingdom Trust Co.) alleging the same cause of action under the Ohio Securities Act.
“In that case, the plaintiffs also alleged that, but for the defendant’s banking services, it would have been impossible for the Aposteloses to sell their unregistered securities,” Rose wrote. “The plaintiffs failed to make any allegation, however, that the defendant ‘acted outside the scope of routine banking activities,’ which Ohio courts have held do not subject financial institutions to liability under (the law).”
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