Justia U.S. 9th Circuit Court of Appeals Opinion Summaries

Plaintiffs purchased variable universal life insurance policies from defendant. Plaintiffs subsequently filed a class action suit against defendant under the Securities Litigation Uniform Standards Act (SLUSA), 15 U.S.C. 78bb(f)(1), for levying excessive cost of insurance charges. The court concluded that claims of breach of contract and breach of the duty of good faith and fair dealing were not precluded by SLUSA, even if such claims related to the purchase or sale of a covered security. The court reversed the district court's dismissal of the two contract claims, on the condition that plaintiffs amend their complaint to remove any reference to deliberate concealment or fraudulent omission. The court affirmed the dismissal of the class claim for unfair competition in violation of California law. View "Freeman Investments, L.P., et al v. Pacific Life Ins. Co." on Justia Law

Plaintiffs alleged that the shares they purchased in Century Aluminum Company were issued under a materially false and misleading prospectus supplement which was treated as part of the company's registration statement for purposes of section 11 of the Securities Act of 1933, 15 U.S.C. 77k. The court concluded that plaintiffs' failure to plead the traceability of their shares meant that they lacked statutory standing under section 11, but failure to allege statutory standing resulted in failure to state a claim on which relief could be granted, not the absence of subject matter jurisdiction. The district court should therefore have addressed the company's motion to dismiss under Rule 12(b)(6), not Rule 12(b)(1). Notwithstanding this error, the court affirmed the dismissal under Rule 12(b)(6). View "Petzschke, et al v. Century Aluminum Co., et al" on Justia Law