California Court of Appeal

In suit against brokerage firm for failing to adequately disclose to investors and potential investors certain "shelf-space" agreements under which defendant received additional compensation for selling certain preferred mutual funds, dismissal of action is reversed as: 1) the action is not preempted by the National Securities Markets Improvement Act as it is a type of action expressly permitted by that statute; and 2) the action is also not preempted by the U.S. Securities and Exchange Commission Rule 10b-10 as the action does not conflict with that rule.

Appellate Information

• Decided 08/24/2007
• Published 08/24/2007

Judges

• ROBIE, J.

Court

• California Court of Appeal

Counsel

• For Appellant:
  
• Bill Lockyer and Edmund G. Brown, Jr., Attorneys General, Thomas Greene, Chief Assistant Attorney General, Mark J. Breckler, Senior Assistant Attorney General, Jon M. Ichinaga, Supervising Deputy Attorney General, W. Richard Sintek, Deputy Attorney General, for Plaintiff and Appellant., Saint Martin & Fan and Amy Fan, Los Angeles, for North American Securities Administrators Association, Inc., Rex Staples, Stephen Hall, Redwood City;  Joseph Brady, and Lesley Walker, as Amici Curiae on behalf of Plaintiff and Appellant.


• For Appellees:
  
• Keesal, Young & Logan, Scott T. Pratt and Bentley P. Stansbury III, Long Beach;  Greensfelder, Hemker & Gale, David M. Harris and David M. Neimeier, for Defendant and Respondent.