RE:Motion to dismiss count IV by Brean and McQuarie is Denied
Some analysis......This motion was made in regard to the facts regarding what is now called "The Kroll Report" that was distributed to the defendants 6 days before the Puda Prospectus was released. The legal hurdle to get the motion approved was to show that the charge was unreasonable, or that a reasonable person would conclude that it is not proper, based on evidence and that the Underwriters had no intent to defraud. The judge essentially made the case that the underwriters were aware of the contents of the Kroll report and that they chose to ignore it.