A Field Guide To Issuer And Nonissuer Transactions

The California Corporate Securities Law of 1968 applies a tripartite classification scheme to securities transactions. Corporations Code Section 25110 requires qualification of issuer transactions; Section 25120 requires qualification of...

When A 20% Interest May Be a 40% Interest

The possible application of California's Corporate Securities Law of 1968 may not be the first thing that comes to mind when amending charter documents. However, Section 25120 of the California Corporations Code makes it unlawful for any person to...

Are Reverse Stock Splits Subject To Qualification In California?

In this post published yesterday, John Jenkins discussed a proposed Nasdaq rule regarding notification and disclosure of reverse stock splits. In light of John's post, I thought a brief refresher on California's treatment of reverse stock splits...

California Securities Claims Can Transend Even Death

As has been discussed in previous posts, Part 5 of the Corporation Securities Law of 1968 establishes violations and Part 6 prescribes remedies. For example, Corporations Code Section 25401 in Part 5 provides, in part, that it is unlawful for any...

Do Issuers Fail To File Form Ds Because They Fear Trolls?

A new paper ostensibly connects the dots between failing to file a Form D, as required by Regulation D, and "patent trolls".   A "patent troll" is a company, typically that does not produce any product or provide any service, that purchase patents for...

Assembly Member Takes Another Run At Digital Financial Asset Law

In June of last year,  noted the introduction of a bill that would subject digital financial asset businesses to licensing in California.  See California Fingers Digital Financial Asset Businesses For Licensing. In September, Governor Gavin Newsom...

When Selling Partnership Interests May Require A Real Estate Broker's License

The definition of a "real estate broker" under the California Real Estate Law encompasses much more than simply selling real estate.   For example, Business & Professions Code Section 10131.3 defines a real estate broker as "a person who, for another...

Does California Regulate Finfluencing?

A week ago, the United States Securities and Exchange Commission charged Kim Kardashian with touting on social media a crypto asset security offered and sold by EthereumMax without disclosing the payment she received for the promotion. According to...

California Bill Would Regulate Digital Financial Assets, But Leaves Status Under Securities Laws Unanswered

In June, I reported that Assemblymember Grayson had gutted and amended AB 2269 to establish a "Digital Financial Assets Law" to be administered by the Department of Financial Protection & Innovation. The bill was amended earlier this week to, among...

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