Lopez

ORDER

This suit is based on alleged mishandling by defendant Dean Witter Reynolds, Inc. (“Dean Witter”) of plaintiff Lopez’s securities account and plaintiff Reitzell’s securities and commodities futures accounts. Claims one (Lopez) and two (Reitzell) allege that Dean Witter churned plaintiffs’ securities accounts in violation of Section 12(2) of the Securities Act of 1933, 15 U.S.C. §771 (2). Claim three, by Reitzell alone, alleges churning of her commodities futures account in violation of Section 4b of the Commodity Exchange Act (“CEA”), 7 U.S.C. § 6b. Claim four, by both plaintiffs, alleges two violations of the Racketeer Influenced and Corrupt Organizations Act (“RICO”), 18 U.S.C. § 1961 et seq. Claims five (Lopez) and six (Reitzell) allege fraudulent nondisclosure of excessive trading of plaintiff’s securities accounts in violation of state common law. Claims seven (Lopez) and eight (Reitzell) allege further violations of Section 12(2) of the Securities Act of 1933 in that Dean Witter failed to disclose that it was acting as a “dealer” in certain transactions with plaintiffs.

Dean Witter has made a variety of alternative motions in response to this complaint. First, Dean…