Levine

MEMORANDUM AND ORDER

Plaintiff Levine and others bring this class action on behalf of themselves and other persons who invested in a California corporation now known as Diamanthuset, Inc. (formerly known as Investia, Inc.), alleging violations of securities laws, the Racketeer Influenced and Corrupt Organizations Act of 1970 (“RICO”), 18 U.S.C. § 1961 et seq., and various state laws. Defendants are the Diamanthuset corporation and several of its officers; the Security Pacific Bank, allegedly involved with the offer and sale of Diamanthuset’s securities; the Bank of Delaware and Wilmington Trust Company (hereinafter “Trust Company Defendants”), which allegedly acted as trustees for Diamanthuset; Frederic M. Smith, counsel to Diamanthuset; and the law firms with which Smith was affiliated (hereinafter “Law Firm Defendants”), namely, Glassman & Browning and Smith & Holland.

The original complaint was filed on November 9, 1987 and the first amended complaint filed on May 12, 1988 (after an earlier version was filed on May 5, 1988). The case now comes before the court on motions to dismiss and other motions by various defendants, and plaintiff's motion for preliminary approval of…