Apollo Capital Fund, LLC v. Roth Capital Partners, LLC, B182089
In action for corporate securities fraud, common law fraud and related claims brought against broker-dealer, sustaining of demurrers is reversed in part where: 1) the complaint sufficiently alleged common law fraud and negligent misrepresentation claims against the broker-dealer; 2) one investor who alleged he had an account with the broker-dealer may amend the complaint, if he can, to allege the existence and nature of the account and his relationship in terms of a fiduciary duty; 3) a cause of action for the sale of securities not qualified in accordance with state law requirements is not preempted by federal law; and 4) the complaint alleged facts sufficient to support liability of the broker-dealer under certain statutory provisions.
- Decided 12/20/2007
- Published 12/20/2007
- California Court of Appeal
- For Appellant:
- The Rosen Law Firm and Laurence Rosen; and Law Office of Brian Barry and Brian Barry, Los Angeles, for Plaintiffs and Appellants Scott L. Zimmerman; Delta Capital Partners; Spiga Ltd.; Target Growth Fund, Ltd.; Next Level Capital Investments, Inc.; Shawn Sadeghat; Norman Tulchin; and Milton and Rosemary Okun., The Dressler Law Group and Thomas W. Dressler, Los Angeles, for Plaintiffs and Appellants Apollo Capital Fund, LLC and Mernoush Mahjobi.
- For Appellees:
- Morgan Lewis & Bockius, Paul A. Richler and David S. Cox, Los Angeles, for Defendant and Respondent Roth Capital Partners, LLC.