Dorsey v. Portfolio Equities, Inc.

EDITH BROWN CLEMENT, Circuit Judge:

Robert Dorsey (“Dorsey”) challenges the district court’s dismissal of his claims for fraud under federal securities law and Texas state law against Portfolio Equities, Inc. (“PEI”), Charter Home Funding, Inc. (“CHF”), Charter Asset Management, Inc. (“CAM”), Charter Equities Corp. (“CEC”), Harold Barnes (“H. Barnes”), and James Barnes (“J. Barnes”) (collectively, “Defendants”). For the following reasons, we affirm in part and reverse in part the judgment of the district court.

I. FACTS AND PROCEEDINGS

Dorsey purchased promissory notes in February 1998 from PEI,…