SCHWARTZ v. BEAR STEARNS COMPANIES, INC

The IAS Court properly dismissed plaintiff's cause of action underGeneral Business Law § 349, since the securities transactions at issue are outside the scope of the statute (see, Smith v. Triad Mfg. Group, Inc., 255 A.D.2d 962, 964). In any event, defendants, as clearing brokers, had no duty to disclose to the introducing broker's clients, and thus the statutory cause of action, as well as the negligence claim, were properly dismissed (see, In re Blech Sec. Litig., 928 F. Supp. 1279, 1295-1296).

THIS CONSTITUTES THE DECISION AND ORDER OF SUPREME COURT, APPELLATE DIVISION, FIRST DEPARTMENT.