Fraud Claims Dismissed Against Castle Harlan

Skadden obtained the dismissal of a seven-count complaint brought against client Castle Harlan, Inc. by Norcast S.ár.l and its parent, Pala Investments Ltd. The dispute arose when an Australian company indirectly acquired Norcast Wear Solutions (NWS) for AU$202 million shortly after the $190 million acquisition of NWS by an entity that was previously affiliated with Castle Harlan. On April 28, Justice Saliann Scarpulla of the Supreme Court of the State of New York (New York County) dismissed Norcast and Pala's claims that Castle Harlan had improperly concealed the possibility that the Australian company would end up acquiring NWS for a greater sum than the price paid to Norcast. The court held that the plaintiffs had failed to plead any claims sounding in fraud, unjust enrichment or tortious interference, among other things, because they had failed to plead any "loss" arising out of the auction.