Daniel Powell 10:04 a.m., March 26
Hard Rock Hotel investors lose appeal of fraud suit
Ninth Circuit doesn't buy fraudulent security claims of plaintiffs
According to Courthouse News Service, investors who bought condominiums in the Hard Rock Hotel San Diego have lost their fraud suit on appeal.
The investors claimed that they had bought contracts for condominiums that were effectively securities that were not registered with the Securities and Exchange Commission or qualified by the California Department of Corporations.
The investors said they suffered tens of millions of dollars in damages. But the Ninth Circuit appellate court said that the securities argument was not valid.
San Diego attorney Mike Aguirre represented investors. He is on vacation but I put in a call to him. If he responds, I will post his statement.