Mirkin v. Wasserman

Opinion

PANELLI, J.

We granted review to determine whether plaintiffs, who purchased securities at a price allegedly affected by misrepresentations, can plead a cause of action for deceit under Civil Code sections 1709 and 1710 without alleging that they actually relied on the misrepresentations. We hold that plaintiffs may not do so.

I. Facts

This case, which comes to us after the superior court sustained defendants’ demurrer, presents a pure question of law. The material allegations of the complaint, which we assume to be true for the purpose of reviewing such rulings (Garcia v. Superior Court…