Court Throws Out PureFunds Lawsuit Against ETFMG

The Honorable Katherine R Dupuis, Presiding Judge of the Chancery Court sitting in Union County New Jersey, dismissed the complaint filed in May 2017 by Andrew Chanin and PureFunds (together, Plaintiffs) against ETF Managers Group (ETFMG), its affiliates and principals because of the Plaintiffs’ continuing failure to abide by court rules and a court discovery order.

ETFMG had sought dismissal of the lawsuit based on Plaintiff’s failure to produce a single document to support their claims by the court-ordered deadline. In contrast, ETFMG had produced thousands of documents that refuted Plaintiffs’ allegations and supported ETFMG‘s counterclaims against Andrew Chanin and PureFunds. In addition, ETFMG had obtained documents, emails and sworn testimony from non-party Nasdaq that ETFMG believes further refuted PureFunds’s claims and significantly bolstered ETFMG’s counterclaims.

The court was informed of examples of the ample evidence undermining Plaintiffs’ claims, as well as a remarkable agreement between Nasdaq and Chanin to discuss ETFMG-related matters using Chanin’s personal email address in order to avoid detection by ETFMG which, by regulation and contract, was obliged to monitor Chanin’s business email.