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.

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

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.

© Allen Matkins | Attorney Advertising

Written by:


Allen Matkins on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*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. Or, sign up using your email address.