Bartlett

MEMORANDUM **

I. BACKGROUND

Plaintiffs allege that Baptist Foundation of Arizona, Inc. (“BFA”) and its affiliates sold millions of dollars worth of promissory notes to buyers, primarily Southern Baptists, who were promised a “tremendous opportunity to be found faithful.” Plaintiffs allegedly invested over $3 million in BFA offerings. Although the investments were marketed as highly secure and profitable, in reality, it was an extremely speculative and high-risk “Ponzi” scheme.

Plaintiffs assert their claims against four groups of Defendants: (1) presumed officers and directors of BFA and its affiliated companies; (2) salespeople who solicited the investments; (3) BFA’s accountants, Arthur Andersen; and (4) BFA’s law firm, Jennings, Strouss & Salmon. Plaintiffs allege the following counts in their First Amended Complaint (“FAC”):

Defendants filed motions to dismiss. Plaintiffs opposed these motions, and each time requested leave to file a second amended complaint. However, Plaintiffs did not lodge a proposed second amended complaint with the court.

The district court dismissed the federal claims in the FAC, concluding that they were inadequate, and that amendment would be…