Shaper

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA 6 JUDITH S. SHAPER, et al., Case No. 21-cv-00493-EMC

Plaintiffs,

ORDER GRANTING IN PART

v. DEFENDANTS’ MOTION TO DISMISS

ROBERT A. ZADEK, et al., Docket No. 32 Defendants.

12 13 Plaintiffs are Judith S. Shaper and the Judith S. Shaper Living Trust (“Shaper Trust”). They have sued Robert A. Zadek and two affiliated companies, L.O. Annie, Inc. and Lenders Funding LLC. Defendants solicited Plaintiffs to give loans in the form of Promissory Notes, and Plaintiffs gave such loans, totaling about $4 million. Plaintiffs allege that the Promissory Notes constitute securities under both federal and state law and that Defendants sold these securities without being registered to do so, as required by federal and state law. Plaintiffs also charge Defendants with making material misrepresentations and/or omitting material facts in connection with the sale of the securities. Plaintiffs have asserted various causes of action in the operative…