United States Ninth Circuit

In an SEC action alleging defendant used stock registered only for employee compensation purposes to raise capital from the public for the cash-strapped publicly traded company he led, in violation of federal securities law, summary judgment for the SEC is affirmed in part, reversed in part, and vacated in part where: 1) the district court properly found that defendant violated the registration provision of federal securities law; 2) however, the summary judgment record did not demonstrate that he made material misstatements as a matter of law for purposes of antifraud claims; and 3) thus, the award of penalties and injunctive relief must be vacated.

Appellate Information

• Argued 02/14/2007
• Decided 08/29/2007
• Published 08/29/2007

Judges

• BERZON, Circuit Judge:, Before:  HARRY PREGERSON, W. FLETCHER, and MARSHA S. BERZON, Circuit Judges.

Court

• United States Ninth Circuit

Counsel

• For Appellees:
  
• John A. Furutani and Mark C. Peters, Furutani & Peters, LLP, Pasadena, CA, for the defendant-appellant., Jeffrey T. Tao, Senior Counsel, Securities and Exchange Commission, Washington, D.C., for the plaintiff-appellee.