The District court denied Avco's motions to dismiss for lack of subject matter jurisdiction and for failure to state a claim because the complaint properly alleged all the necessary elements of a claim of securities fraud and conspiracy. Davis alleged that Avco was jointly liable for soliciting Dare to be Great distributorships in conspiracy with Glen Turner Enterprises. The subject of securities fraud was clearly within the court's jurisdiction and the complaint was properly pled to allow the case to move forward.
Full case is also available at: http://www.mlmlegal.com/legal-cases/Davis_v_AvcoCorp.php
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