World Surveillance Group Inc. v. La Jolla Cove Investors, Inc.

Re: Dkt. No.

ORDER GRANTING MOTION TO DISMISS

INTRODUCTION

This case arises out of alleged breaches of investment agreements between plaintiff World Surveillance Group Inc. (“WSGI”) and defendant La Jolla Cove Investors, Inc. (“La Jolla”). In a prior round of pleadings challenges, the Court dismissed without prejudice WSGI’s claims for intentional misrepresentation, fraud in the inducement, and securities fraud for failure to satisfy the heightened pleading requirements of Federal Rule of Civil Procedure 9(b), and also dismissed without prejudice WSGI’s claim for breach of fiduciary duty. Dkt. No. 36. WSGI amended its complaint to try to save these claims but the amendments are not enough. They are now dismissed with prejudice. WSGI’s claims for breach of contract, breach of the covenant of good faith and fair dealing, and under the California Unfair Competition Law will go forward.

DISCUSSION

I. Breach of Fiduciary Duty

The Court’s prior dismissal order outlines the factual background and the pertinent legal standard, which will not be repeated here. See Dkt. No. 36.

*1235 The Court’s prior order dismissed WSGI’s breach of fiduciary duty claim because it failed to…