MPhase Shareholders Revive Part of Fraud Lawsuit Against CEO

Shareholders of a New Jersey-based microfluidics and nanotechnology company made small strides against its CEO after the Fourth Circuit revived part of their suit Monday.

Four former mPhase Technologies Inc. executives sued Anshu Bhatnagar, the current CEO, for breach of contract, fraud, negligent misrepresentation, and breach of fiduciary duty. The US District Court for the District of Maryland granted Bhatnagar’s motion to dismiss, “concluding the claims were derivative and must be brought on behalf of the corporation,” according to court documents.

The US Court of Appeals for the Fourth Circuit disagreed with the dismissal of the fraud and negligent misrepresentation ...