On December 14, 2011, Judge Ware, United States District Judge (Northern District of California) denied the motion of Silicon Valley Law Group (“SVLG”) for summary judgment or, in the alternative partial summary judgment, which motion sought to dismiss the Trustee’s claims in whole or part.  The decision was solely with respect to the Trustee’s case, since the same court had already denied SVLG’s motions to dismiss the case of the individual plaintiffs.  The Judge had previously denied class certification as to this one remaining case, and so it is proceeding as a case with individual plaintiffs.  The Judge has consolidated the Trustee’s and the individual cases for a joint trial in October 2012.  The Trustee’s counsel and Mr. Brace, counsel for the individuals will work together on the presentation.  

The Judge’s decision also allowed SVLG to file its motion again on the limited issue of how to measure the Trustee’s damages.  We do not know whether it will do so, but we are prepared and very confident in our position that the damages are at least $34 million in principal, plus other damages and interest.  The Judge also denied the Trustee’s motion to add certain theories, which we sought to add once the Court had denied the class certification motion.  We think we will have the opportunity to present the same arguments to the Court as the case moves forward.

I will not go into this in more detail or the technicalities, because that would involve privileged material best kept confidential, but I and my counsel Golenbock Eiseman Assor Bell & Peskoe LLP, are very pleased with this decision.  We believe a trial is a certainty and we will be extremely well prepared.