Shooting down a novel defense theory from a Silicon Valley computer company, the California Supreme Court on Thursday for a second time voted to keep courthouse doors open to aggrieved, out-of-state shareholders who sue California corporations.
By the same 5-2 margin that ruled in January that defrauded out-of-state investors had a right to sue under California law, the court ruled against a Santa Clara hardware manufacturer that argued it could not be held liable for stock fraud because it did not actually sell any stock when the alleged fraud occurred.
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