California judge issues rare acquittal of pair in securities fraud case
Briefly

U.S. District Judge Cynthia Bashant questioned the clarity of the fraud claims, stating, "It's not clear to me who was being defrauded," highlighting the weaknesses in the prosecution's arguments.
After a jury previously hung 8-4 in favor of acquittal, Bashant noted there was insufficient evidence to convict, leading to her decision to acquit Destler and Lazerus.
The judge remarked, "There was a lot of smoke swirling around in the case," emphasizing the ambiguous nature of the allegations against the defendants.
Prosecutors faced significant challenges as they objected to the dismissal motions, insisting the evidence was strong, yet Judge Bashant found their theories to be scattered.
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