Appellate Division Affirms Dismissal of Castle Harlan Claims

In a win for Skadden client Castle Harlan Inc., the New York Supreme Court, Appellate Division affirmed the dismissal of a seven-count complaint brought by Russian-owned companies Norcast S.ár.l and Pala Investments Ltd. arising from the 2011 sale of Norcast Wear Solutions (NWS), a Canadian mining products company. The plaintiffs claimed that Castle Harlan had committed fraud by purchasing NWS from them for $190 million in a private sale and then on-selling it, four hours later, to Australian company Bradken for a higher amount. The Appellate Division, First Department, agreed with the trial judge that the plaintiffs had failed to allege any actionable wrongdoing and added that, given the absence of a no-flip clause in the share purchase agreement, Castle Harlan's conduct could not be said to be fraudulent.