Mehta v. Farukhi

Defendants' Motion for Judgment on the Pleadings

more+
less-

Plaintiffs sued defendant, their CPA, for advising them to invest in a private light manufacturing company (in which the CPA was a director) and allegedly inducing them to hold on to their investments by periodically telling them that "everything was great" or "things are fine." The company regularly provided plaintiffs with copies of the quarterly and annual financials, audited reports from Deloitte, and discussed the status of the company at shareholder meetings, which put plaintiffs on actual notice as to the company's performance. Defendant's motion for judgment on the pleadings asserts that generalized positive statements about the company's performance cannot be fraudulent as a matter of law, and do not give rise to a direct action against a director. To the extent any action could have been brought, it had to have been brought as a derivative action on behalf of the shareholders. Having failed to state a claim, the Fourth Amended Complaint must be dismissed with prejudice.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

Reference Info:Legal Memoranda: Motion Addressed to Pleadings | State, 9th Circuit, California | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Robert Scott Lawrence, Callahan & Blaine | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×