November 13, 2014
Schlam Stone & Dolan partner David Katz was cited in a December 20, 2011 blog post in Truth On The Market written by Professor Larry Ribstein, the nation's foremost academic expert on the law of LLCs and other closely held entities. The article reports on the New York Court of Appeals' decision involving the fiduciary duties owed by organizers of New York LLCs to those they solicit to invest in the LLCs. Mr. Katz successfully convinced the Court of Appeals not to adopt a sweeping ruling reached by the lower appeals court holding that organizers of New York LLCs always owe fiduciary duties to those they solicit to invest in the LLCs based solely on their status as "promoters" of the LLCs.
Coverage of the case can be found here: