In an ongoing legal dispute centered on broker marketer fraud claims, FNEX Capital LLC and Maverick Fund Partners have filed a motion to partially dismiss a lawsuit brought by investment management firm Leader Capital Corp. The suit, filed in the U.S. District Court for the Western District of Washington, alleges securities fraud, breach of contract, and other misconduct that purportedly caused over $3.5 million in damages.
FNEX Capital, a broker-dealer, and Maverick Fund Partners, a sales and marketing services provider, strongly refute the allegations, arguing that the claims stem from Leader Capital’s dissatisfaction with statements allegedly made by the defendants’ representatives after the termination of a sales agreement in April 2024.
In their filing, the defendants assert that the statements in question—described by Leader Capital as defamatory—do not meet the legal threshold for securities fraud or breach of contractual obligations. FNEX and Maverick seek dismissal of all claims except the defamation charge, which they argue is based solely on unverified statements attributed to unnamed agents.
“Plaintiff fails to specify the ‘who, what, when, where, and how’ of any alleged misrepresentation,” the defense stated, emphasizing that broad accusations cannot substitute for specific pleadings required in securities fraud cases.
Leader Capital alleges that following the contract termination—prompted by unfavorable pricing terms and a failed renegotiation attempt—its investors began to withdraw funds at unusually high levels. The firm claims these withdrawals were triggered by misleading and damaging comments allegedly made by FNEX and Maverick representatives, including suggestions that Leader Capital was under investigation by the U.S. Securities and Exchange Commission (SEC).
Leader Capital contends that such claims misrepresented routine SEC examinations and falsely implied regulatory wrongdoing.
The lawsuit, filed in January 2025 and amended in March, accuses the broker and marketer of publishing false and confidential information about Leader Capital, thereby damaging its reputation and investor trust.
Legal representation for Leader Capital is provided by Lewis Brisbois Bisgaard & Smith LLP, while FNEX Capital and Maverick Fund Partners are represented by attorneys from Davis Wright Tremaine LLP and Barnes & Thornburg LLP.
