Kaufman v. BDO Seidman

MERRITT, Chief Judge.

The plaintiffs brought two actions against the same defendant investment counsellors arising from the same investment losses, the first action in state court for malpractice, misrepresentation and breach of contract, the second in federal court for securities fraud1, RICO2 and breach of fiduciary duty.3 The state court jury found that defendants’ professional misconduct in giving investment advice, including the concealment of certain facts, was not the proximate cause of plaintiffs’ losses. The primary question on appeal is whether the District Court correctly held that…