United States Ninth Circuit

Summary judgment for defendant-city in a securities fraud action brought by plaintiffs, purchasers of municipal bonds offered by defendant-city to finance the development of a cable and Internet system, is affirmed, where: 1) for federal claims under the Securities Exchange Act, plaintiffs failed to establish a triable issue of fact on the issue of loss causation; 2) defendant-city was entitled to statutory immunity on the state law claims because California courts have applied section 818.8 of the California Government Claims Act to immunize public entities from liability for misrepresentations sanctioned by those entities; and 3) the district court properly denied defendant-city's motion for defense costs, because although the defendant-city was entitled to summary judgment, plaintiffs had reasonable cause to bring suit, and the evidence sufficed to establish their good faith.

Appellate Information

• Decided 09/19/2013
• Published 09/19/2013

Judges

• McKEOWN

Court

• United States Ninth Circuit

Counsel