California Appellate Court Denies Rescission Claim

On January 11, 2011, the California Court of Appeals denied rescission as a remedy in a California blue sky law claim where the plaintiffs were not in privity of contract with defendant. Defendant, a former employee of the plaintiffs, had advised plaintiffs to purchase the security at issue. The Appeals Court held that rescission was unavailable because defendant did not sell the plaintiffs the security nor did she receive any money in connection with the sale of the security. Decision.