Court denies motion to dismiss Applied Energetics' malpractice claim against law firm GKN and Whalen

APPLIED ENERGETICS, INC.

Magistrate Judge Freeman denied defendants' motion to dismiss malpractice and rescission claims on March 30, 2022.
Claim for violating NYRPC 1.7 and 1.8 dismissed as duplicative of malpractice claim (partial grant).
Dispute involves 1,242,711 shares issued to defendants at a discount during a 2018 proxy contest.
Plaintiff alleges defendants conflicted by prior representation of former CEO Farley and failed to disclose conflict.
Case can now proceed; no outcome guaranteed.

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