Facts

A securities class action was filed against Resonant Inc., several of its officers, and its underwriter, MDB Capital Group.

The complaint alleged that the IPO prospectus and certain statements made after the IPO misrepresented Resonant's ability to develop its technology to meet the specifications of Resonant's sole customer, a large mobile phone component manufacturer. Nine months after the IPO, that customer terminated its development agreement with Resonant, which led to the filing of the lawsuit alleging Section 10 claims against Resonant and its officers, and Section 11 claims against all defendants.

PLAINTIFFS' CONTENTIONS:
Plaintiff claimed defendant violated federal securities laws by making misleading statements in its initial public offering disclosures related to the Skyworks Duplexer technology, causing damages to stock purchasers. Plaintiffs asserted causes of action for violating various sections of the Securities and Exchange Act and its attendant rules.

DEFENDANT'S CONTENTIONS:
Resonant, Inc. is a development stage technology company that develops components for mobile communications devices. MDB acted as the underwriter for Resonant's IPO in 2014.

Defendants disputed the allegations and moved to dismiss the complaint, challenging the sufficiency of plaintiffs' allegations.

Result

The court dismissed the Section 11 claims alleged against MDB and Resonant, but denied in part Resonant's motion to dismiss the Section 10 claims against it. The only claims asserted against MDB were the Section 11 claims. Accordingly, MDB was dismissed from the case in its entirety, while the litigation is proceeding against Resonant.

Other Information

FILING DATE: March 17, 2015.