Vystar Corp (VYST)

[theDolphin]

https://www.casemine.com/judgement/us/606386c64653d05de834127c

"The Court next considers Vystar's misrepresentation and market manipulation counterclaim. ACC ¶ 184-203. EMA contends that this counterclaim should be dismissed as it is duplicative of Vystar's breach of contract claim and fails to comply with Rule 9(b) or plead loss causation, scienter, or damages. The Court considers the misrepresentation and market manipulation allegations in turn. While the Court dismisses the claim for misrepresentation, it does not dismiss the claim for market manipulation"

EMA also argues that Vystar fails to comply with Rule 9(b) or plead loss causation, scienter, or damages. EMA's arguments are unpersuasive because they, again, rely on a stilted view of Vystar's claim as targeting the conversions themselves rather than the full scheme alleged. The Court concludes that the allegations laid out above satisfy the less stringent Rule 9(b) standard for market manipulation. It further concludes that the allegations that EMA had a scheme to take advantage of depressed common stock prices suffices to plead scienter."

"Accordingly, the Court DENIES EMA's motion to dismiss so much of Vystar's Section 10(b) claim as pertains to market manipulation"

"The parties are ORDERED to resume discovery. The Clerk of Court is respectfully directed to close the motions at ECF Nos. 75 and 112.

SO ORDERED.
Dated: March 29, 2021"