N.Y. High Court: Martin Act Does Not Preempt Common-Law Claims

ALBANY, NY – New York’s Martin Act does not preempt a plaintiff’s breach of fiduciary duty and gross negligence claims against an investment manager because the legislative history of the act “does not expressly mention or otherwise contemplate the elimination of common-law claims,” the New York Court of Appeals ruled Dec. 20 (Assured Guaranty (UK) Ltd. v. J. P. Morgan Investment Management Inc., No. 227, N.Y. App.).

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