How Donald Trump Used Fine Print to Make It Harder to Sue Wall Street for Fraud
International Business Times
November 2, 2016
Jordan A. Thomas weighs in on Donald Trump’s techniques and practices within the court system
While Donald Trump has recently spoken out against Wall Street, one of his most critical court battles demonstrates how he secured a landmark ruling helping to protect Wall Street from charges of fraud.
Trump scored a victory for himself and the financial industry by persuading judges that his own fine print warnings meant he had not misled investors when he lured them to bet—and ultimately lose—hundreds of millions of dollars on one of his riskiest development projects. Unlike his other past business moves that appeared to affect only Trump’s business partners, vendors, and customers, this case helped set a court precedent that quickly became a law.
Partner Jordan Thomas said, “It is troubling that some courts throw out cases before discovery based upon the bespeaks caution doctrine.” “That denies injured parties the ability to establish that there was actual knowledge or recklessness when a company makes false forward-looking statements.”
Thomas also commented on the risk disclosures for companies in regard to this law. “The problem with many companies’ risk disclosures today is that they are not tailored and they do not enumerate the assumptions built into their projections. In cases where you have these generalized, cookie cutter disclosures, companies shouldn’t be able to shield themselves from liability.”