Judge Kaplan Denies Medallion Financial and Andrew Murstein’s Motion to Dismiss the SEC Fraud Case

On September 18, 2024, Judge Lewis A. Kaplan of the Southern District of New York denied Medallion Financial Corp.’s and Andrew Murstein’s motion to dismiss the SEC’s fraud case, allowing the claims to proceed. The ruling meant the allegations of illegal touting and an inflated valuation of Medallion Bank would be tested on the evidence rather than thrown out at the pleading stage. Medallion Financial had spent years and millions of dollars fighting the case. Eight months later, on May 30, 2025, it and Mr. Murstein consented to a Final Judgment with permanent injunctions and $4 million in penalties.