Elkhorn Capital Dodges Securities, Misrepresentation Claims

Elkhorn Capital Group and its founder, Benjamin Fulton, won dismissal of a lawsuit by investors who said they lost at least $2.5 million due to alleged misrepresentations and securities fraud.

Keystone Associates LLC failed to plead facts showing it justifiably relied on alleged misrepresentations about a marketing arrangement between Elkhorn and Barclays Plc when it acquired an equity interest in Elkhorn in exchange for a $1 million capital contribution, the U.S. District Court for the District of Delaware said.

Co-plaintiff Cable Mountain Partners LLC, the assignee of Keystone’s equity interest, didn’t exist at the time of the original transaction, so ...