Facts

Thomas Seaman filed a complaint against California Business Bank, Raffi Krikorian, Michael Maluccio, Cole Minnick, Jane Wald, Peggy Hansen, Mladen Buntich, Steven Hong, Biff Naylor, Kenneth Thomson, Gary Cross, Ellwood Johnston, Aaron Yashouafar, in his capacity as court-appointed Receiver for Investors Prime Fund LLC and IPF Banc Servicing LLC.

PLAINTIFF'S CONTENTIONS:
Plaintiff alleged that, relying on the Bank's representations and statements, IPF purchased unregistered securities from the Bank in 2011. The Bank and its officers and directors then issued false and misleading statements, inflating the stock prices, and failed to disclose certain problems. Plaintiff sued defendants, alleging various violations of federal and state securities laws.

DEFENDANTS' CONTENTIONS:
Defendants brought a F.R.Civ.P 12(b)(6) motion for dismissal, arguing plaintiff had failed to plead the elements of a federal securities law violation as a matter of law.

Result

The district court entered judgment in favor of defendants, and declined to exercise supplemental jurisdiction over Seaman's state claims. Accordingly, the district court dismissed Seaman's state law claims without prejudice.