February 17, 2026
Schlam Stone & Dolan LLP secured two significant victories on behalf of the firm’s client, Michael Mojtahedi, in the Supreme Court of the State of New York. In a Decision and Order issued by the Honorable Lyle E. Frank, the Court denied almost in its entirety defendants’ pre-answer motion to dismiss Mr. Mojtahedi’s Amended Complaint in Mojtahedi v. Craddock et al., Index No. 153659/2025. The ruling allows the vast majority of Mr. Mojtahedi’s claims to proceed to discovery and trial. Partners Jeffrey M. Eilender and Jessica Caterina are in charge of the case.
Mr. Mojtahedi’s lawsuit arises from his $1 million investment and subsequent secured loan to RocketStar, Inc. (“RocketStar”), an aerospace technology company. The complaint alleges that Mr. Mojtahedi was fraudulently induced to invest based on material misrepresentations concerning the company’s financial condition and the intended use of funds, and that invested funds were misused in violation of contractual obligations.
The defendants sought dismissal of all claims at the pleading stage. The Court rejected those efforts, holding that Mr. Mojtahedi adequately pleaded claims for fraud and breach of contract under multiple investment agreements, overwhelmingly sustaining the core of Mr. Mojtahedi’s case.
“This decision is an important step forward for our client,” said Mr. Eilender. “The Court carefully analyzed the governing agreements and applicable law, and concluded that Mr. Mojtahedi’s claims warrant full factual development. We look forward to continuing to prosecute this action vigorously.”
In another win for Mr. Mojtahedi in a related case, Justice Frank granted his motion for summary judgment in lieu of complaint under CPLR 3213 — enforcing a $250,000 promissory note against RocketStar. RocketStar conceded the note’s existence, validity, and nonpayment, but attempted to avoid judgment through speculative setoff and fiduciary-duty allegations. The Court rejected those defenses, holding that claims extrinsic to the instrument are insufficient to defeat a CPLR 3213 motion on a promissory note.
Schlam Stone & Dolan LLP is a New York-based litigation boutique that represents businesses and individuals in complex commercial disputes in state and federal courts nationwide.