Arco Capital Corporation Ltd. v. Deutshe Bank AG
OPINION re: 12 MOTION to Dismiss filed by Deutshe Bank AG. Based on the conclusions set forth above, Defendant's motion to dismiss Plaintiff's federal securities law claim is granted with leave to replead within 20 days. Supplemental jurisdiction over Plaintiff's state law cause of action is declined, without prejudice. (Signed by Judge Robert W. Sweet on 6/6/2013) (cd)
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
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ARCO CAPITAL CORPORATIONS LTD.,
12 Civ. 7270
-againstDEUTSCHE BANK AG,
A P PEA RAN C E S:
Attorneys for Plaintiffs
MILLER & WRUBEL P.C.
570 Lexington Avenue
New York, NY 10022
John G. Moon, Esq.
re L. Huene, Esq.
222 East 41st Street
New York, NY 10017
By: Jayant W. Tarnbe, Esq.
Kelly A. Carrero, Esq.
Sweet, D. J. ,
Defendant Deutsche Bank AG ("Deutsche Bank" or the
"Defendant") has moved pursuant to Rules 9(b) and 12(b) (6) of
Rules of Civil Procedure to dismiss the complaint
aintiff Arco Capital Corporation Ltd.
(the "Complaint") of
Upon the conclusions set forth below, the motion of
Deutsche Bank to dismiss the cause of action for securities
fraud is granted with leave to
lead within 20 days, and
supplemental jurisdiction over Arco's state law claim is
I. Prior Proceedings
On September 27, 2012, Arco
led the Complaint
setting forth two causes of action against Deutsche Bank for (I)
securities fraud in violation of Section 10(b) of the Securities
Exchange Act of 1934
(the "Exchange Act") and (2)
for breach of
On December 3,2012, invoking Rules 12(b) (6) and 9(b)
1 Procedure, Deutsche Bank moved to
of the Federal Rules of C
The instant motion was heard and marked
lly submitted on January 16, 2013.
llowing factual background is drawn from the
Complaint and from documents referenced in or integral to the
Complaint as submitted by the parties.
The allegations of
Complaint are accepted as true for the purposes of this motion,
see Chambers v. Time Warner, Inc., 282 F.3d 147, 152 (2d Cir.
do not constitute findings of fact by the Court.
This action a
entional or rec
ses out of Deutsche Bank's allegedly
ss misconduct in connection
2006 collateralized loan obligation
"Transaction"), known as CRAFT EM CLO 200
or the "Issuer") .
Deutsche Bank is a
th a June
"CRAFT EM CLO"
nancial institution organized and
existing under the laws of Germany with its principal place of
the United States ln New York, New York.
Arco is an exempted limited company organized and
existing under the laws of the Cayman Islands and external
managed by a company with its princ
1 place of bus
( Id . '3[ 14).
Guaynabo, Puerto Rico.
In June 2006, Deutsche Bank of
opportunity to acquire debt securities
originated emerging mar
red investors the
(the "Notes") tied to a
ion) of Deuts
s investments and derivative
transactions (the "Reference Obligations") .
transactions were ef
(Id. '3[ 2).
cted through CRAFT EM CLO, a Cayman
Islands company created by Deutsche Bank.
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