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OSTER v. KIRSCHNER

602081/07, 1432, 1433

77 A.D.3d 51 (2010)

905 N.Y.S.2d 69

AVI OSTER et al., Appellants, v. H. STEPHEN KIRSCHNER et al., Defendants, and PHILIP L. CHAPMAN et al., Respondents.

Appellate Division of the Supreme Court of New York, First Department.

Decided July 6, 2010.

Attorney(s) appearing for the Case

Morrison Cohen LLP, New York City ( Donald H. Chase of counsel), for appellants.

McManus, Collura & Richter, P.C., New York City ( Scott C. Tuttle , Jillian M. Amagsila and Anne P. Richter of counsel), for Philip L. Chapman, respondent.

Wolff & Samson P.C., New York City ( Russel D. Francisco and William E. Goydan of counsel), for Lum, Danzis, Drasco & Positan, LLC, respondent.

GONZALEZ, P.J., ANDRIAS, SAXE and RENWICK, JJ., concur.

OPINION OF THE COURT

MANZANET-DANIELS, J.

In this case we are presented with the question of whether plaintiffs have adequately alleged claims of aiding and abetting fraud, breach of fiduciary duty, and conversion against a law firm that drafted the private placement memoranda (PPMs) soliciting investment in the Cobalt Multifamily entities, an admitted Ponzi scheme, whereby the main defendants, convicted criminals—one of whom was banned from the securities...

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