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Venable Must Again Defend Adviser Suit Over Facebook Stock Scam

Oct. 29, 2020, 8:58 PM

A former investment adviser deserves another chance to show Venable LLP helped an alleged swindler abscond with $11.25 million without delivering promised Facebook Inc. shares, the Third Circuit said Thursday.

Timothy Burns should get another shot because the district court abused its discretion when it failed to inquire into the former adviser’s problems with his attorney and denied leave to amend without giving an affirmative reason, the U.S. Court of Appeals for the Third Circuit said in an unpublished opinion.

Burns accused Venable of conspiring with Troy Stratos, then using the alias Ken Dennis, to take the pooled funds ...

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