GenAudio, CEO See SEC Win Upheld in Suit Over Apple Deal Emails

An audio software company and its CEO lost their bid to undo the SEC’s win in a suit alleging they misled investors about Apple Inc.'s interest in licensing their product, according to a Tenth Circuit ruling issued Tuesday.

Taj Jerry Mahabub and GenAudio Inc. argued that they qualified for registration exemptions, had a reasonable belief the Apple license deal would go through, and shouldn’t be subject to disgorgement and civil fines. But their challenges are meritless, and the lower court’s rulings stand, the U.S. Court of Appeals for the Tenth Circuit said.

The Securities and Exchange Commission accused Mahabub ...