Lucia v. Prospect Street High Income Portfolio, Inc.

STAHL, Circuit Judge.

In the late 1980’s, plaintiffs-appellants purchased shares of two separate “junk bond” funds. After the value of the purchased shares plummeted, plaintiffs alleged various federal securities law violations. In a series of related rulings, the district court dismissed some of plaintiffs’ allegations for failure to state a claim, and granted summary judgment in favor of defendants on all remaining claims. We affirm in part and reverse in part.

I

FACTUAL BACKGROUND AND PRIOR PROCEEDINGS

Prior to this appeal, the proceedings in these two cases were not formally consolidated. As…