Providence, RI. In a decision that clears the name of Wells Fargo banker Peter M. Cannava, the U.S. District Court in Providence, RI, on Tuesday granted summary judgment dismissing claims alleging aiding and abetting violations of the securities laws filed by the U.S. Securities and Exchange Commission in connection with former Major League Baseball pitcher Curt Schilling’s former video game company 38 Studios LLC (38 Studios).
“We are extremely pleased with the court’s ruling in this matter,” said Brian Kelly, partner with Nixon Peabody and the lead attorney on the case. “It’s gratifying to see our client’s name cleared, and the decision validates that there was no evidence Mr. Cannava misled investors.”
U.S. District Judge John J. McConnell, Jr., issued summary judgment dismissing the proceedings against Mr. Cannava entirely, granting a motion filed by Mr. Cannava’s counsel in late March. The summary judgment motion argued that the SEC did not provide any evidence to support the necessary finding that Mr. Cannava acted recklessly, in an extreme departure from the standards of ordinary care. Moreover, as described in detail in the motion, Mr. Cannava did not encounter any red flags when preparing documents related to a $75 million Rhode Island municipal bond offering involving 38 Studios. Mr. Cannava’s counsel argued the contrary—that the undisputed evidence showed that Mr. Cannava performed his role in a prudent, diligent and good-faith manner.