BRM Technologies Sues Broadview International and Two Executives For Securities Fraud in Checkpoint Stock Sale.SAN FRANCISCO--(BUSINESS WIRE)--Nov. 16, 1999-- Israeli Company Seeks Damages of Over $100 Million Plus Lost Profits to Compensate for Fraud and Breach of Fiduciary Duty Noun 1. fiduciary duty - the legal duty of a fiduciary to act in the best interests of the beneficiary legal duty - acts which the law requires be done or forborne by Investment Banker Investment Banker A person representing a financial institution that is in the business of raising capital for corporations and municipalities. Notes: An investment banker may not accept deposits or make commercial loans. BRM BRM biologic response modifier. BRM Biological response modifier, see there Technologies, Ltd., an Israeli-based venture capital firm, has sued Broadview International, its chairman, chief executive officer and managing director Paul Deninger, and a former managing director, Bernard Goldstein, for fraud, breach of fiduciary duty and breach of contract in connection with Broadview's engagement by BRM in 1995 to value and sell 36,000 shares of Check Point Software Technologies, Ltd. (Nasdaq:CHKP CHKP Check Point Software Technologies Ltd. (stock abbreviation, AMEX) ), then a privately held company privately held company A firm whose shares are held within a relatively small circle of owners and are not traded publicly. . The amount of stock involved at the time is the equivalent of 5.94 million publicly traded Check Point shares today. BRM is seeking damages from Broadview, a New York-based investment banking firm with offices in San Mateo, Calif., as well as the two executives, of over $100 million, plus lost profits, in a lawsuit filed November 16 in a California Superior Court. Check Point went public at $14 per share in 1996, the year following the private BRM stock sale, and now trades at approximately $125 per share on the Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. . The complaint asserts that while Deninger was conducting negotiations with and on behalf of BRM in its sale of Check Point shares, he secretly purchased through Goldstein a portion of the stock BRM had asked him to value and sell. The company said it only recently discovered Deninger's secret purchase of Check Point stock. The complaint states that had BRM known of Deninger's clandestine financial interest it would not have sold any of the shares. |
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