Facts

Investors sued Morgan Keegan, Raymond James, and various parties involved in a commercial real estate transaction sponsored by Asset & Real Estate Investment Co., or AREI, alleging conspiracy to defraud, fraudulent nondisclosure, violations of state securities law, and other causes of action.

The lawsuit was filed in 2008 against Shattuck Hammond Partners. In 2011, Shattuck Hammond merged with Morgan Keegan & Co. Inc., and thereafter ceased to exist as a distinct legal entity. Raymond James Financial subsequently acquired Morgan Keegan.

PLAINTIFFS' CONTENTIONS:
Plaintiffs contended that they purchased tenant-in-common ownership interests in a senior housing facility from AREI. Plaintiffs accused Shattuck Hammond and several lenders and other defendants of failing to disclose that AREI's sole owner was a convicted felon. Plaintiffs also alleged that defendants conspired to defraud plaintiffs by concealing material information, and that its actions violated state securities laws.

DEFENDANTS' CONTENTIONS:
Shattuck Hammond denied any wrongdoing, arguing that its role in the transaction was limited to brokering debt financing from lenders, and that it had no involvement in the sale of TIC interests to plaintiffs. On these grounds, Shattuck Hammond moved for summary judgment or, in the alternative, for summary adjudication.

Result

The court granted Shattuck Hammond's motion for summary judgment in its entirety, finding that there were no triable issues of material fact.

Other Information

By the time Shattuck Hammond moved for summary judgment, AREI and a few other defendants had settled with plaintiffs or gone bankrupt, and were no longer parties to the action. According to defense, there were, and still are several defendants actively involved in the litigation. Shattuck Hammond was not the sole remaining defendant. FILING DATE: Dec. 5, 2008.