Social Media Posts Buoyed Investor’s Securities Act Claims, Panel Rules

Mealey's (December 22, 2022, 3:55 PM EST) -- SAN FRANCISCO — A Ninth Circuit U.S. Court of Appeals panel ruled that a federal district court erred in dismissing an investor’s claims against a real estate property management company, its founder and CEO and two funds the company managed over alleged misrepresentations the defendants made in social media posts and offering materials soliciting investments in the funds, joining with the 11th Circuit in finding that “a person can solicit a purchase” of securities within the meaning of the Securities Act of 1933 “by promoting the sale of a security in a mass communication.”...