A Broward Circuit Court judge has thrown out a proposed class action lawsuit against former foreclosure king David Stern and his company, DJSP Enterprises Inc., that was previously dismissed by a federal judge.
Judge Jack Tuter on Friday granted summary judgment to DJSP, Stern and Kumar Gursahaney, the company’s former chief financial officer, treasurer and executive vice president. They were sued by former shareholders: hedge fund Philadelphia Financial Management of San Francisco LLC and Blue Lion Masters Fund, a Cayman Islands limited partnership.
The lawsuit alleged the hedge funds lost nearly $7 million on their DJSP shares because Stern and Gursahaney failed to disclose adverse information about the condition of the company, which led to artificially inflated share prices. The causes of action were common law fraud and common law negligent misrepresentation.