Flood

MEMORANDUM **

In this securities fraud action concerning a stock exchange in connection with oil and gas reserves in Uzbekistan, a jury found that M.K. Miller, president and director of International Business Resources, Inc. (“IBR”), and agent/promoter B. Stephen Bailey had violated § 10(b) of the Securities Exchange Act of 1934, 15 U.S.C. § 78j(b), and Rule 10b-5 of the Securities Exchange Commission (“SEC”), 17 C.F.R. § 240 .10b-5, and that IBR, Miller, and Bailey were guilty of securities fraud. Prior to the verdict, after both parties had rested, the trial court judge granted defendants’ motion for judgment as a matter of law (“JMOL”) dismissing the § 20(a) claim under 15 U.S.C. § 78t(a) against N.E. “Nola” Miller (M.K. Miner’s wife), secretary/treasurer/executive officer, Bryan Miller (M.K. Müler’s son), vice president/director, and Irwin Katz, director. 1 Plaintiffs appeal the JMOL, in addition to the judge’s order denying plaintiffs’ motion to extend liability to include the community property and for attorney’s fees and costs. We reverse and remand in part and affirm in part.

A. Section 20(a) claim

The trial court judge’s decision to grant JMOL is reviewed de novo. EEOC…