NY District Court Finds That Same Plaintiff In ARS Case Has No California Securities Law Claims

In this Friday the 13th post, I wrote about The Anschutz Corporation’s (TAC) success in having California law apply to its negligent representation claims against the defendant New York rating agencies. Thus, it may come as a surprise to learn that a different federal district court judge has rejected TAC’s California securities law claims.

TAC had filed a complaint alleging various federal and state law claims against various underwriters of auction rate securities (ARS) and rating agencies. TAC’s claims against certain of these defendants were transferred to the Southern District of New York. In re Merrill Lynch Auction Rate Secs. Litig., 2011 U.S. Dist. LEXIS 14053, *31-32 (S.D.N.Y. Feb. 9, 2011). TAC alleged that the underwriting defendants had violated California Corporations Code Sections 25400 and 25401. Chief District Court Judge Loretta Preska, however, found that TAC had failed allege that it had been injured by any conduct in California.

Please see full article below for more information.

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Published In: Administrative Agency Updates, Civil Procedure Updates, Securities Updates

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.

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