California Corporate & Securities Law

In June, I wrote this post about U.S. District Court Judge Dana Sabraw's opinion in Salameh v. Tarsadia Hotels, 2011 U.S. Dist. LEXIS 30375. The case involved the question of whether ownership interests in individual units of the Hard Rock Hotel San...

On April 19, 2011, this petition for a writ of mandamus was filed against the CalPERS Board of Administration, its President (Robert Feckner), and its Chief Executive Officer (Anne Stausboll) for allegedly laundering the salary of a receiver, J....

Yesterday, a California Court of Appeal concluded that the idea of a one person partnership under the Revised Uniform Partnership Act has as much reality as a number whose square is a negative number.  Corrales v. Corrales involved two brothers who...

Recess Is Almost Over

When a shareholder sues corporate officers and directors, she must decide whether to bring a direct action (which may be a class action) or a derivative suit. The consequence of making the wrong decision may be dismissal of the shareholder's suit as...

Last week, a group of ten eminent academics filed this petition asking the Securities and Exchange Commission to develop rules requiring public companies to disclose to shareholders the use of corporate resources for political activities. I believe...

California Business and Professions Code Section 16600 provides that "every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void."  As discussed in this legal alert, the...

Corporations Code Section 25400 is California's anti-market manipulation statute. The statute copied clauses (1) through (5) of Section 9(a) of the Securities Exchange Act of 1934 and declares unlawful specified actions intended to affect the market...

Yesterday, I wrote about Professor Rebecca File’s article analyzing the merits of cooperation. Although she concluded that self-initiated investigations increased the risk of an SEC sanction, she also found that penalties are lower when an issuer...