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Cal. Corp. Code § 25403

FRAUDULENT AND PROHIBITED PRACTICES

Known as the Corporate Securities Law

The act spans §§ 25000–25707 (201 sections).

Applied in 3 court decisions — leading case 531 F. Supp. 2d 1173 - In Re Verisign, Inc., Derivative Litigation (2007)

Most recently applied in In re Facebook, Inc. (March 2019)

Added by Stats. 1998, Ch. 391, Sec. 12

How often courts cite this section

20072010201910
citing decisions per year

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.

(a) Every person who with knowledge directly or indirectly controls and induces any person to violate any provision of this division or any rule or order thereunder shall be deemed to be in violation of that provision, rule, or order to the same extent as the controlled and induced person.

(b) Any person that knowingly provides substantial assistance to another person in violation of any provision of this division or any rule or order thereunder shall be deemed to be in violation of that provision, rule, or order to the same extent as the person to whom the assistance was provided.

(c) It shall be unlawful for any person directly or indirectly to do any act or thing which would be unlawful for that person to do under any provision of this division or any rule or order thereunder through or by any other person.

(d) Nothing in this section shall be construed to limit the power of the state to punish any person for any conduct which constitutes a crime under any other statute.

Official source: California Legislative Information. Reproduced from public-domain California statutes; confirm against the official source for the current text. Not legal advice.