WM High Yield Fund v. O'Hanlon

MEMORANDUM

LEGROME D, DAVIS, District Judge.

Plaintiffs1 — six institutional Funds that invested in debt securities issued by Diagnostic Ventures, Inc. (DVI, Inc.)2 — sue for violations of Section 10(b) of the Securities Exchange Act of 1934, 15 U.S.C. § 78j(b) and Rule 10b-5, 17 C.F.R. § 240.10b-5. They also seek imposition of liability under Section 20(a) of the Exchange Act, 15 U.S.C. § 78t(a); Section 18 of the Exchange Act, 15 U.S.C. § 78r; and Pennsylvania’s common law of fraud.3 Jurisdiction is the Exchange Act, 15 U.S.C. § 78aa; federal question, 28 U.S.C. § 1331; and supplemental over…