Following a multi-day bench trial, on December 6, 2018, the Hon. Gerald Rosenberg entered judgment for Maloney Firm client DelMorgan & Company in the matter of DelMorgan & Company v. Le Jolie LLC.
In December 2015, web-based retailer Le Jolie LLC sued DelMorgan & Company, its investment bankers and advisors, for failing to raise the $3 million in equity funding the company wanted. In the lawsuit, Le Jolie LLC sought $55 million in lost profits.
In November 2018, DelMorgan & Company hired Patrick Maloney as trial counsel. After hearing witnesses and evidence in the Santa Monica Courthouse, Judge Rosenberg ruled that La Jolie had failed to establish any of the claims it asserted against DelMorgan, and that DelMorgan had earned the entire advisory fee paid by Le Jolie.
During the trial, La Jolie presented two expert witnesses who attempted to testify that DelMorgan had not provided services as promised, resulting in the demise of Le Jolie. The Maloney Firm established that Le Jolie had never been profitable and that its principal had falsified documents on which the experts relied. It was also established that the company had not actually gone out of business, but had instead continued the same business model, with the same staff, at the same location, all under a new name. Based thereon, the Firm succeeded with motions to deem the expert testimony unreliable.
Having rejected the claims by Le Jolie, the Court found that DelMorgan had met its obligations to Le Jolie and was entitled to retain all of the fees it earned during its representation of Le Jolie.
Patrick Maloney may be reached at email@example.com or 310-347-4601.