Summary
holding that securities transactions are outside the scope of Section 349
Summary of this case from In re Sterling Foster Co., Inc., Securities Lit.Opinion
November 30, 1999
Order, Supreme Court, New York County (Charles Ramos, J.), entered August 27, 1998, which granted defendants' motion to dismiss the complaint, unanimously affirmed, with costs.
Gregory E. Keller, for Plaintiff-Appellant,
Jonathan M. Hoff, for Defendants-Respondents.
ELLERIN, P.J., WILLIAMS, LERNER, RUBIN, SAXE, JJ.
The IAS Court properly dismissed plaintiff's cause of action underGeneral Business Law § 349 , since the securities transactions at issue are outside the scope of the statute (see, Smith v. Triad Mfg. Group, Inc., 255 A.D.2d 962, 964). In any event, defendants, as clearing brokers, had no duty to disclose to the introducing broker's clients, and thus the statutory cause of action, as well as the negligence claim, were properly dismissed (see, In re Blech Sec. Litig., 928 F. Supp. 1279, 1295-1296).
THIS CONSTITUTES THE DECISION AND ORDER OF SUPREME COURT, APPELLATE DIVISION, FIRST DEPARTMENT.