ScripsAmerica, Inc. v. Ironridge Global LLC

ORDER GRANTING DEFENDANTS’ MOTION TO DISMISS

On May 22, 2014, ScripsAmerica, Inc. (“Scrips”) filed this action against Iron-ridge Global LLC d/b/a Ironridge Global IV, Ltd., John Kirkland, and Brendan O’Neil (collectively “Ironridge”), as well as certain fictitious defendants. 1 The complaint alleges, claims for securities fraud, breach of contract, tortious bad faith, and declaratory relief. The claims concern defendants’ allegedly fraudulent scheme to increase the shares of Scrips’ stock to which they were entitled ,by manipulating Scrips’ stock price. The parties had earlier entered into an agreement that obligated Ironridge to pay off certain of Scrips’ accounts payable in exchange for the issuance of stock on an agreed formula.

Ori June 25, 2014, defendants filed a motion to dismiss Scrips’ breach of contract, tortious bad faith, and declaratory relief claims under the Rooker-Feldman doctrine 3 and Younger v. Harris, 401 U.S. 37 ,- 91 S.Ct 746 , 27 L.Ed.2d 669 (1971). Alternatively, defendants sought to have those claims stayed under Colorado River Water Conservation District v. United States , 424 U.S. 800 , 96 S.Ct. 1236 , 47 L.Ed.2d 483 (1976). Defendants also to have…