Yesterday, I discussed one-half of the battle in Zalkind v. Ceradyne, Inc. Today, I address the securities law issues raised by Ceradyne’s cross-complaint.

To recap, the Zalkinds (Stanley, Elizabeth and a limited partnership that they owned) sold assets to Ceradyne for stock and cash. The Zalkinds’ suit against Ceradyne for failure to timely register the stock was the subject of yesterday’s post. Today’s post is dedicated to Ceradyne’s cross-complaint for securities fraud under Corporations Code § 25401.