SmartBrief
Confirm favorite deletion?
Securities Regulation Keyed to Cox
Absolute Activist Value Master Fund Ltd. v. Ficeto
Citation:
677 F.3d 60 (2012)Facts
The nine Cayman Islands hedge funds engaged Absolute Capital Management Holdings Limited (ACM) as their investment manager from at least mid-2004. Defendants allegedly orchestrated a pump-and-dump scheme involving U.S. penny stocks issued by thinly capitalized U.S. companies quoted on the Over-the-Counter Bulletin Board or Pink OTC Markets. The Trading Defendants caused the Funds to purchase billions of shares directly from U.S. Penny Stock Companies through PIPE transactions, with Homm, Ficeto, and Hunter acting as placement agents and receiving fees. After these initial purchases, defendants artificially inflated stock prices by trading and re-trading the stocks at progressively higher prices, often between the Funds themselves, creating the illusion of trading volume. This fraudulent trading was typically conducted through Hunter, a California-based SEC-registered broker-dealer. Once prices were sufficiently inflated, defendants sold their own shares to the Funds at windfall profits, having obtained the shares for little or nothing. The scheme resulted in substantial commissions and profits for defendants while causing the Funds to suffer losses of at least $195,916,216.
Only StudyBuddy Pro offers the complete Case Brief Anatomy*
Access the most important case brief elements for optimal case understanding.
*Case Brief Anatomy includes: Brief Prologue, Complete Case Brief, Brief Epilogue
- The Brief Prologue provides necessary case brief introductory information and includes:
Topic:
Identifies the topic of law and where this case fits within your course outline.Parties:
Identifies the cast of characters involved in the case.Procedural Posture & History:
Shares the case history with how lower courts have ruled on the matter.Case Key Terms, Acts, Doctrines, etc.:
A case specific Legal Term Dictionary.Case Doctrines, Acts, Statutes, Amendments and Treatises:
Identifies and Defines Legal Authority used in this case.
- The Case Brief is the complete case summarized and authored in the traditional Law School I.R.A.C. format. The Pro case brief includes:
Brief Facts:
A Synopsis of the Facts of the case.Rule of Law:
Identifies the Legal Principle the Court used in deciding the case.Facts:
What are the factual circumstances that gave rise to the civil or criminal case? What is the relationship of the Parties that are involved in the case.Issue(s):
Lists the Questions of Law that are raised by the Facts of the case.Holding:
Shares the Court's answer to the legal questions raised in the issue.Concurring / Dissenting Opinions:
Includes valuable concurring or dissenting opinions and their key points.Reasoning and Analysis:
Identifies the chain of argument(s) which led the judges to rule as they did.
- The Brief Prologue closes the case brief with important forward-looking discussion and includes:
Policy:
Identifies the Policy if any that has been established by the case.Court Direction:
Shares where the Court went from here for this case.