The New York State Court of Appeals has ruled that the Martin Act, which authorizes the State Attorney General to bring fraud-based securities enforcement actions, does not preempt private, common-law, non-fraud claims alleging breach of fiduciary duty and gross negligence.  The Court distinguished prior cases that precluded private rights of action under the Martin Act by explaining that the absence of a private right of action does not require preemption of all common law tort claims, especially in the absence of any proven legislative intent.  The Court also rejected defendant’s policy arguments because, according to the Court, both the Martin Act and private actions further the same goal: “combating fraud and deception in securities transactions.”