Adviser’s Attorneys, Mom, Exit Rimu Capital’s Self-Dealing Case

Rimu Capital Ltd. failed to state claims against its investment adviser’s attorneys and his mother in its suit alleging the adviser made an improper recommendation, a federal court ruled Thursday.

Adviser Jason Ader and his companies, including SpringOwl Asset Management LLC and SpringOwl Associates LLC, remain in the suit alleging he fraudulently induced Rimu to invest $25 million in a special purpose acquisition company in which he had an undisclosed interest. But Rimu didn’t adequately allege that two attorneys with Sadis & Goldberg LLP aided and abetted the fraud, or that Ader’s transfer of funds to his mother, Pamela Ader, ...