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CALIFORNIA CORPORATE & SECURITIES LAW

Court Rules Indirect Purchaser Claims Against Theranos May Proceed

Theranos’ anni horrorum began in October 2015 with the publication of a story by investigative reporter John Carreyrou at The Wall Street Journal.  Lawsuits and government investigations ensued.  Although the Theranos recently announced agreements with the Arizona Attorney General and the Centers for Medicare & Medicaid Services, U.S. District Court Magistrate Judge Nathanael M. Cousins last week dealt a setback to the…

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Section 10(b) Claim Receives a Do-Wacko-Do

So many Section 10(b) claims involve claims of misrepresentation that it easy to forget that the rule also makes it unlawful to use manipulative devices in connection with the purchase or sale of securities.  However, a recent ruling by Judge Margaret M. Morrow considered whether a plaintiff had adequately pled a claim of manipulative conduct in…

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Court Rules That Section 25400 Requires That Manipulative Conduct Occur Within California

Overstock.com, Inc. filed a lawsuit in the San Francisco Superior Court alleging that various investment firms had caused the price of its shares to decline by manipulating the securities markets.   Earlier this week, Judge John E. Munter granted summary judgment to four of the defendants.  Overstock.com, Inc. v. Morgan Stanley & Co., Inc., Superior Court Case…

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Court Slaps Down Section 25400 Market Manipulation Claim Against Convicted Felon

Corporations Code Section 25400 is California’s anti-market manipulation statute.  The statute copied clauses (1) through (5) of Section 9(a) of the Securities Exchange Act of 1934 and declares unlawful specified actions intended to affect the market price of a security.  Section 25500 establishes a civil remedy against any person who willfully participates in any act or transaction…

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