Section 32 Common Law Actions Applicable to Securities Fraud

• Library: Commercial Law 2007

A person defrauded in a securities transaction can take advantage of actions outside the Missouri Securities Act of 2003, §§ 409.1-101 to 409.7-703, RSMo Supp. 2006. As noted in §7.1 above, the Missouri Securities Act of 2003 does not diminish rights at common law. See § 409.5-509(m), RSMo Supp. 2006. Hence, a common law action can be in addition to or an alternative to federal or other state claims. See, e.g.,Reding v. Goldman Sachs & Co., 382 F. Supp. 2d 1112, 1120 (E.D. Mo. 2005) (applying Missouri’s common law actions to a securities transaction); Clearly Canadian Beverage Corp. v. Am. Winery, Inc.,257 F.3d 880, 893 (8^th Cir. 2001) (same).

For instance, rather than alleging fraud in connection with the offer or sale of a security, a plaintiff could assert common law fraud. To adequately allege such a claim, the plaintiff must plead and prove the following:

1. A...