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CALIFORNIA CORPORATE & SECURITIES LAW

Federal Judge Rules Out Private Cause Of Action Under California Control Person Statute

Some persons may be deemed to violate the Corporate Securities Law of 1968 even though they did not directly violate the law.  Corporations Code Section 25403(a) provides that a person who with knowledge directly or indirectly controls and induces any person to violate any provision of the CSL or any rule or order thereunder is deemed to be…

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Failure To Name Primary Violator Doesn’t Doom Class Action Against Secondary Actors

One might expect plaintiffs to always name the primary violator in a securities fraud suit.  However, what if suing the primary violator is not an option because the primary violator is in bankruptcy or the subject of a court ordered stay?  Can there be a finding of secondary liability when there is no finding of…

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