Bosley

MEMORANDUM *

Defendants-appellants Special Devices Inc. (“SDI”) and Joseph Spranza, referred to collectively as “Spranza,” appeal an award of restitution, prejudgment interest, attorney’s fees, and punitive damages in favor of the plaintiff-appellee Fred Bosley in this securities fraud action. We have jurisdiction under 28 U.S.C. § 1291 , and we affirm. We deny plaintiffs motion for sanctions.

This action arises out of two purchases of SDI stock by Bosley. Bosley purchased 300 shares of SDI stock at $250 per share, for a total cost of $75,000 on July 26, 1995, and 250 shares of SDI stock for $70,000 cash and $30,000 in consulting services on March 26,1996.

We find none of Spranza’s arguments on appeal to be meritorious.

1. Spranza contends that the district court erred in finding that the state securities fraud action was not barred by the statute of limitations under California Corporations Code § 25506. We hold otherwise. The defendants have not shown that the district court clearly erred in finding that Bosley lacked inquiry notice of their alleged fraud prior to June of 1998. 1 The record does not show that Bosley had access to information that should have put him on…