DALLAS – Dec. 18, 2017 – A trial team from global law firm Greenberg Traurig, LLP defeated securities fraud claims brought by the U.S. Securities and Exchange Commission (SEC) against its client, William Mapp III, Wednesday, Dec. 13, 2017.
After an 8-day trial in the U.S. District Court for the Eastern District of Texas, a federal jury returned no liability verdicts on all four counts of scienter-based fraud claims against Mr. Mapp, the former CEO and chairman of Servergy Inc., a Texas-based technology start-up company.
The SEC alleged that Mr. Mapp had misrepresented and omitted material facts in a private placement memorandum that Servergy used to raise $20 million in 2013. In addition, the SEC charged Mr. Mapp with offering unregistered securities.
While the jury found that Mr. Mapp violated a single negligence-based provision of the securities laws, it fully cleared him of committing any fraud and of offering unregistered securities.
“The jury has spoken,” said Jason S. Lewis of Greenberg Traurig, “We view this as an absolute victory for Mr. Mapp. He did not intentionally violate any securities laws and he has been cleared of all the SEC’s overreaching fraud claims.”
The case, filed in April 2016, initially focused on Texas Attorney General Ken Paxton and his role in recruiting investors to Servergy in July 2011. The SEC’s claims against Paxton, which were dismissed with prejudice earlier this year, claimed that Paxton violated securities laws because he didn’t disclose his compensation relationship with Servergy.
Servergy and a former company board member were also defendants in the lawsuit and settled with the SEC shortly after the case was filed.
The Greenberg Traurig Team included White Collar Defense & Special Investigations and Securities Litigation shareholders Lewis and David W. Klaudt, associates Amanda McKinzie and Natalie D. Thompson, and paralegal Amber Sladovnik. Assisting the team was associate Brennwyn Romano.
About Greenberg Traurig, LLP
Greenberg Traurig, LLP (GTLaw) has more than 2,000 attorneys in 38 offices in the United States, Latin America, Europe, Asia, and the Middle East and is celebrating its 50th anniversary. One firm worldwide, GTLaw has been recognized for its philanthropic giving, was named the largest firm in the U.S. by Law360 in 2017, and is among the Top 20 on the 2017 Am Law Global 100. Web: www.gtlaw.com Twitter: @GT_Law.