California Court of Appeal

In plaintiffs' suit against their former employee for securities fraud related claims, who worked as an analyst on plaintiffs' biotech investments, trial court's grant of nonsuit as to the securities fraud claim is affirmed, as because privity of contract is necessary to maintain an action for rescission under sections 22504 and 22504.1, a purchaser of securities may not maintain such a claim against someone other than the direct seller, as rescission requires the contracting parties to be placed in the position they were in prior to contracting, and a non-seller, who did not receive any money from the purchaser, cannot return that money to the purchaser.

Appellate Information

• Decided 01/11/2011
• Published 01/11/2011

Judges

• NARES

Court

• California Court of Appeal

Counsel

• For Appellant:
  
• Frank E. Rogozienski, Dan Lawton