Thomas Dailey v. Lisa Medlock

OPINION

BERTELSMAN, District Judge.

Plaintiffs-Appellants, a group of twenty-one individual and trust investors, appeal the district court’s dismissal of their securities fraud complaint pursuant to Fed. R.Civ.P. 12(b)(6).

Because we conclude that the complaint fails to state viable federal claims under the applicable pleading standards, we affirm in part, but we reverse the dismissal with prejudice of plaintiffs’ claim for silent fraud under Michigan law.

I. BACKGROUND

A. The Stock Offering

On July 16, 2009, Community Central Bank Corporation issued a Private Placement Memorandum (“PPM”) in order…