New York court dismisses DeHeng case

According to the Asian Lawyer, the judge said whilst the investors had adequately alleged a US securities law transaction, the plaintiffs had not proved that the firm or its former partner had acted with knowledge of the alleged fraud. They had also failed to allege how the Chinese law firm came to learn about the alleged theft so it could knowingly mislead its client. And he also pointed out that De Heng’s motivation to collect its fees was insufficient in a securities fraud since all firms are assumed to want to increase their profitability.