PALM DESERT, CA (Sept. 11, 2018)
Nova Oculus Partners, LLC has won an important ruling in its ongoing battle with the U.S. Securities and Exchange Commission, succeeding in having certain claims dismissed against company executives.
In hearing motions to dismiss the SEC's case against Nova Oculus and others, the U.S. District Court for the Central District of California, Eastern Division determined that allegations of misconduct against two company executives, Lantson Eldred and Terrence Walton, contained in the SEC's complaint, failed to state a valid claim. The SEC leveled the charges against Nova Oculus, Eldred, Walton, Peter Pocklington and others in April. The three executive members and the company responded by announcing their intention to vigorously defend themselves.
In the motion to dismiss, Nova Oculus counsel Becky James asserted the SEC has mounted a 'baseless attack' on Nova Oculus and its three executives, and that SEC's 'one-sided and often misleading allegations' did not demonstrate any wrongdoing by the company or the individuals involved.
In its ruling, the court dismissed the sole claim against Walton as failing to adequately allege any negligence by Walton. The court also dismissed a misrepresentation claim against Eldred, concluding the complaint failed to establish he made any statements that the SEC claims were misrepresentations.
After hearing arguments and issuing its ruling from the bench, the court has permitted the SEC to file an amended complaint. Nova Oculus and the other defendants will continue to fight the SEC's allegations as the case proceeds.