It is unlawful for any person to offer or sell a security in this state, or to buy or offer to buy a security in this state, by means of any written or oral communication that includes an untrue statement of a material fact or omits to state a material fact necessary to make the statements made, in the light of the circumstances under which the statements were made, not misleading.
Cal. Corp. Code § 25401
FRAUDULENT AND PROHIBITED PRACTICES
Known as the Corporate Securities Law
The act spans §§ 25000–25707 (201 sections).
Applied in 11 court decisions — leading case Tse
Most recently applied in In re Avignone (August 2018)
Amended by Stats. 2015, Ch. 190, Sec. 19
How often courts cite this section
Court decisions citing this, by year. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.
Official source: California Legislative Information. Reproduced from public-domain California statutes; confirm against the official source for the current text. Not legal advice.