Fuls

MEMORANDUM OF OPINION

This action arises out of plaintiffs’ purchase of three parcels of real property in a recreational subdivision known as “Lake Shastina.” Plaintiffs have alleged violations of Section 10(b) of the Securities Exchange Act of 1934, 15 U.S.C. § 78j(b), and Rule 10b-5 thereunder, violations of the Interstate Land Sales Full Disclosure Act (“ILSFDA”), 15 U.S.C. § 1703 (a)(2), violations of the California subdivision laws, common law fraud, and breach of trust.

The matter is presently before the Court on the motions of defendants Shastina Properties, Inc. (“Shastina Properties”), Shastina Realty, Inc. (“Shastina Realty”), Beverly Enterprises (“Beverly”), Golden West Associates, Inc. (“Golden West”), and Diversified Mortgage Investors (“DMI”) to dismiss or for summary judgment.

I. FACTUAL BACKGROUND

It appears from the complaint that on December 20, 1972, plaintiffs purchased three lots from certain defendants in a recreational subdivision known as “Lake Shastina.” Shastina Properties is alleged to have been the developer and seller of lots in Lake Shastina. Shastina Realty and Golden West are alleged to have the exclusive sales agents for Lake Shastina lots.…