California Court of Appeal

Judgment dismissing causes of action against defendant investment bankers for their role in structuring a real estate transaction in which the seller failed to disclose that its sole owner was a convicted felon and concealed the existence of a second loan that grossly overleveraged the property is reversed, where: 1) the operative second amended complaint does not state a cause of action against the defendant investment bankers for materially assisting in a securities law violation under Corporations Code section 25504.1; but 2) the facts as pleaded are minimally sufficient to state a cause of action against the defendant investment bankers for common law fraud based upon a conspiracy to defraud the investors.

Appellate Information

• Decided 05/29/2013
• Published 05/29/2013

Judges

• McGUINESS

Court

• California Court of Appeal

Counsel