A federal district court granted summary judgment in favor of a placement agent in connection with a claim based on an investment transaction. The court held that under New York law, the investor failed to prove it justifiably relied on the placement agent's statements by reason of a "big boy" letter agreement the investor entered into with the placement agent. Under this letter agreement, the investor acknowledged that it was sophisticated, knew what it was doing and could fend for itself. The investor was found to have met with management of the company it invested in and received access to a data room of due diligence materials. The court ruled that the clear language of the letter agreement and the surrounding factors rendered any claim of reliance by the investor on statements made by the placement agent unjustifiable.
Pharos Capital Partners, L.P. v. Deloitte & Touche, L.L.P., No. 2:03-cv-362, 2012 WL 5334027 (S.D. Ohio Oct. 26, 2012)