Bi v. McAuliffe

A bevy of Chinese investors put $500k each into a startup electric car company, which later collapses. The investors sue, among others, the company’s former chairman (Terry McAuliffe, who went on to become governor of Virginia), asserting that misstatements he made to the media about the company’s achievements defrauded the investors into putting up the cash. Fourth Circuit: “We decline to whitewash the alleged misstatements here.” But the investors failed to adequately plead they justifiably relied on the misstatements—not least because the misstatements were in English and many of the investors don’t understand English.

Tags: 2019, Fourth Circuit, Investment Fraud, Negligence

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