Speirs v. BlueFire Ethanol Fuels CA4/3

Opinion

IKOLA, J.-

— Plaintiffs held warrants (i.e., options to buy common stock from a corporation at a particular price by a particular date) issued by defendant BlueFire Ethanol Fuels, Inc. The warrants included an anti-dilution provision, requiring BlueFire to adjust the exercise price set in the warrants “to equal the consideration paid” by a subsequent investor for equity interests in BlueFire. But the anti-dilution provision did not apply to certain issuances of securities, as specified in a list of five categories of exceptions.

A few years after issuance of the warrants, BlueFire…