Benton v. Merrill Lynch & Co., Inc.

BYE, Circuit Judge.

William B. Benton and approximately forty other investors appeal the district court’s 1 orders dismissing their Complaint and Amended Complaint for failure to state facts on which relief could be granted under two theories of recovery — violation of the Arkansas Securities Act and common law fraud. We affirm.

I

This action was filed by the plaintiffs (collectively the “investors”) who had loaned money to David Howell, a self-described trader, in exchange for promissory notes, which guaranteed them a specific return on their investment. Sometime in 2001, in an effort to induce…