Adato v. Kagan

Judge Van Graafeiland has written his usual thoughtful, perceptive majority opinion. I agree with it in part and disagree with it in part.

With respect to the federal securities laws claims, I agree with the majority’s reversal of the district court’s dismissal of these claims. I also agree with the majority’s remand of these claims to the district court for trial. But I would reverse and remand — not on the ground urged by the majority, that appellants should be permitted to prove investor intent and knowledge — but on the ground that appellants’ complaint sufficiently states claims for…