Infinium Employees Can’t Get Back $5M They Loaned to Company

Infinium Capital Management LLC employees are out of luck when it comes to the $5 million they invested and lost in the company, the Seventh Circuit said.

The employees were on notice when they loaned money to the company that it was on shaky financial ground, the opinion by Judge William C. Griesbach, sitting by designation, said.

The court also said the employees didn’t prove fraud with sufficient particularity. It noted a circuit split over the group pleading doctrine, which was recognized by the Ninth Circuit and says it’s reasonable to believe public corporate statements are the collective actions of ...