Carol Gamble Trust 86 v. E-Rex, Inc.
Opinion
Lead Opinion
MEMORANDUM **
The Carol Gamble Trust and other similarly situated shareholders in E-Rex, Inc. (collectively the “Shareholders”) brought a securities class action against E-Rex and its officers (“E-Rex Defendants”), as well as E-Rex’s legal advisors, Brian Lebrecht *977 and the Lebrecht Group (“Lebrecht Defendants”). The Shareholders allege that E-Rex bought and sold securities in violation of the Securities Act of 1933 (“1933 Act”), the Securities Exchange Act of 1934 (“1934 Act”), and Nevada state law. The district court determined that the shareholders’ complaint failed to meet the stringent pleading requirements of the Private Securities Litigation Reform Act (“PSLRA”), 15 U.S.C. § 78u-4(b)(l-3), and dismissed the complaint with prejudice. The shareholders appeal the district court’s order denying reconsideration of this dismissal.
We review de novo the district court's dismissal of a federal securities complaint for failure to state a claim under Federal Rule of Civil Procedure 12(b)(6). In re Silicon Graphics Inc. Sec. Litig., 183 F.3d 970, 983 (9th Cir.1999). We also review de novo dismissal of a securities complaint without leave to amend. Id.