The ongoing legal battles involving Cabot Lodge Securities witnessed a noteworthy development this month. The brokerage firm’s lawsuit, lodged in a New York federal court against the Chicago-based law firm, Stoltmann Law Offices PC, was dismissed on the grounds of “lack of personal jurisdiction”.
Stoltmann Law Offices PC currently represents 47 claimants in two unique arbitrations against Cabot Lodge Securities in Colorado. The crux of the matter originates from the bankruptcy of GWG Holdings. Post-bankruptcy, Stoltmann was involved in the recruitment of clients to sue their brokerages. During this process, a press release named Aegis Capital, a brokerage based in New York, was issued.
Cabot Lodge Securities made allegations that Stoltmann directly approached Ann Louise Werts, a former employee who worked in the firm’s Colorado operation. This was an attempt to bring the Chicago-based law firm to New York jurisdiction, fostering Cabot’s efforts in true legal combat.
Yet, the court ruled in favor of Stoltmann Law Offices, emphasizing that the New York federal court didn’t possess personal jurisdiction over the firm or the case at hand. The firm’s clients, who are engaged in arbitrations against Cabot in Colorado are presumably affected.
For further details on this evolving story, click here to visit Bloomberg Law’s report.