Security Tech Co., Execs Can't Escape Investors' Suit

Law360 (September 14, 2018, 7:47 PM EDT) — A New Jersey federal judge on Friday refused to release a Florida law enforcement technology company and its former executives from a securities class action accusing it of inflating essentially worthless stock, ruling that investors could have plausibly relied on alleged misrepresentations to make their purchases.

U.S. District Judge Freda L. Wolfson denied dismissal motions by Global Digital Solutions Inc., and GDS’ former Chief Financial Officer David Loppert and one-time Executive Vice President William J. Delgado, ruling that the investors’ fraud-on-the-market claims could move forward because…