5-4.81 Violation of Cal Corp Code 25401, 25501
5-4.81 Violation of Cal Corp Code 25401, 25501
5-4.81 Violation of Cal Corp Code 25401, 25501
Date Filed:
Plaintiff, an individual, hereby alleges as follows:
JURISDICTION
1. This court has jurisdiction over this matter, and venue is proper in
part pursuant to 17 U.S.C. 77v, and Cal. Code Civ. Proc. Sections 395 and 395.5
in that at all times relevant hereto defendant Suzanne L. Bowser and defendant
this Court.
for her own account and in her capacity as an member of defendant Suza Lambert
A-1 (hereinafter “the Letter Agreement”) alleged herein was entered into by
that:
newspaper interviews.
5. This representation made by the defendant was in fact false. The true
production company, which she did, re-styling it “Suza Lambert Bowser LLC.”
be false and made this representation with the intention to deceive and
7. The plaintiff, at the time this representation was made and at thetime
the plaintiff took the actions herein alleged, was ignorant of the falsity of
reliance on this representation, the plaintiff was induced to and did invest
$50,000 plus other consideration. Had the plaintiff known the actual facts,
she would not have taken such action. The plaintiff’s reliance on defendant
herein alleged, the plaintiff was induced to spend over 100 hours of her time
and effort in an attempt to derive a profit from the security interest sold
compensation, by which plaintiff has been and will be damaged in the sum of
known to defendant with the intention on the part of the defendant of thereby
injury, and was despicable conduct that subjected plaintiff to cruel and
PARTIES
organized and existing under the laws of the State of California with its
principal place of business unknown, and which regularly conducts business, and
California.
defendant Suza Lambert Bowser LLC was acting in concert with, or under the
Defendants DOES 1 through 50, or any of them, and for this reason said
defendants are sued herein by such fictitious names. When Plaintiff ascertains
Plaintiff will amend this complaint to allege the same. Plaintiff is informed
and believes and thereon alleges that at all times relevant to the facts alleged
herein, each such fictitiously named defendant was responsible in some manner
15. Plaintiff is informed and believes and thereon alleges that at all
times relevant to the facts alleged herein, each defendant was the agent,
servant or employee of each of the other defendants, and as such was acting
within the course and scope of such agency and employment, and with the express
Suzanne L. Bowser sought to raise to raise money and did raise money to produce
movies.
the same had a material influence upon plaintiff and induced plaintiff to make
represented to plaintiff that she would own 50% of a start-up movie production
contained in the General Allegations and all previous paragraphs of all previous
sections and Causes of Action this Complaint, inclusive, as though fully set
forth herein.
22. At the time that plaintiff was induced to make the investment
alleged herein, and continuing thereafter, plaintiff was led to believe that the
alleged herein, were true, namely: plaintiff would own 50% of an start-up movie
production company.
23. When defendant Suzanne L. Bowser made the above representations, she
knew them to be false and made these representations with the intention to
these representations in the manner herein alleged and invest in the movie
investment scheme.
defendants, and each of them, and at the time plaintiff took the actions herein
Bowser was justified because defendant Suzanne L. Bowser represented that she
possessed creative talents and was technically and financially capable with
plaintiff has incurred damages in that plaintiff was induced to invest in the
movie investment scheme, all by reason of which plaintiff has been damaged in at
least the sum in excess of the jurisdictional amount of this Court, and
to each of the defendants with the intention on the part of the defendants of
injury, and was despicable conduct that subjected plaintiff to a cruel and
contained in the General Allegations and all previous paragraphs of all previous
sections and Causes of Action this Complaint, inclusive, as though fully set
forth herein.
(as described above), was made without a reasonable basis for believing it to be
true, and was made with intent to mislead and deceive plaintiff. The
representations were made with the intent to induce plaintiff's reliance and to
information on the grounds that the information was material to the investment
alleged herein and the investment required the disclosure of all material facts.
32. Had plaintiff known of the true facts; to wit, defendants intended
to take plaintiff’s money, using some of the money for purposes of the
partnership while using the bulk of the money to develop other projects,
excluding plaintiff from participating in such other projects, she would not
herein alleged, plaintiff has incurred damages in that plaintiff was induced to
invest in the movie investment scheme, by reason of which plaintiff has been
contained in the General Allegations and all previous paragraphs of all previous
sections and Causes of Action this Complaint, inclusive, as though fully set
forth herein.
carried through the mails or in interstate commerce for the purpose of sale or
for delivery, in the movie investment scheme. which constituted the offer and
Securities Act of 1933, the Exchange Act of 1934, and the California
Corporations Code.
36. Plaintiff is informed and believes, and on that basis alleges, that
no registration statement has been filed with the United States Securities and
Exchange Commission (“SEC”) or has been in effect with respect to the offering
alleged herein.
37. Plaintiff is informed and believes, and on that basis alleges, that
Corporations or has been in effect with respect to the offering alleged herein.
violated Sections 5(a) and 5(c) of the Securities Act, 15 U.S.C. §§ 77e(a) and
77e(c), and thereby violated Section 12(a) of the Securities Act, 15 U.S.C. §§
Code.
plaintiff has incurred damages in that plaintiff was induced to invest in the
least the sum in excess of the jurisdictional amount of this Court, plus
attorneys fees and costs, and additional amounts according to proof at time of
to each of the defendants with the intention on the part of the defendants of
contained in the General Allegations and all previous paragraphs of all previous
sections and Causes of Action this Complaint, inclusive, as though fully set
forth herein.
in order to make the statements made, in light of the circumstances under which
the purchaser.
them, violated, and unless restrained and enjoined will continue to violate,
herein alleged, plaintiff has incurred damages in that plaintiff was induced to
invest in the YYY investment scheme, all by reason of which plaintiff has been
contained in the General Allegations and all previous paragraphs of all previous
sections and Causes of Action this Complaint, inclusive, as though fully set
forth herein.
circumstances under which they were made, not misleading; or (3) engaged in
them, violated, and unless restrained and enjoined will continue to violate,
Section 10(b) of the Exchange Act, 15 U.S.C. § 78j(b), and Rule 10b-5
herein alleged, plaintiff has incurred damages in that plaintiff was induced to
invest in the movie investment scheme, all by reason of which plaintiff has been
contained in the General Allegations and all previous paragraphs of all previous
sections and Causes of Action this Complaint, inclusive, as though fully set
forth herein.
above, offer and sold a security in the state of California by means of a both
fact and omitted to state material facts necessary in order to make the
statements made, in light of the circumstances under which they were made, not
misleading.
herein alleged, plaintiff has incurred damages in that plaintiff was induced to
invest in the movie investment scheme, all by reason of which plaintiff has been
Court, plus attorneys fees and costs, and additional amounts according to proof
to each of the defendants with the intention on the part of the defendants of
injury, and was despicable conduct that subjected plaintiff to a cruel and
unjust hardship and conscious disregard of plaintiff’s rights, so as to justify
contained in the General Allegations and all previous paragraphs of all previous
sections and Causes of Action this Complaint, inclusive, as though fully set
forth herein.
herein alleged, plaintiff has incurred damages in that plaintiff was induced to
invest in the movie investment scheme, all by reason of which plaintiff has been
Court, plus attorneys fees and costs, and additional amounts according to proof
UNJUST ENRICHMENT
contained in the General Allegations and all previous paragraphs of all previous
sections and Causes of Action this Complaint, inclusive, as though fully set
forth herein.
59. Defendants, and each of them jointly and severally, through their
from the monies and investment belonging to plaintiff, and in so doing has
stress, and physical injury, all of which damages and costs were not only
actions.
equity and good conscience, it would be unconscionable and otherwise unjust for
herein alleged, plaintiff has incurred damages in that plaintiff was induced to
invest in the movie investment scheme, all by reason of which plaintiff has been
Court, plus attorneys fees and costs, and additional amounts according to proof
contained in the General Allegations and all previous paragraphs of all previous
sections and Causes of Action in this Complaint, inclusive, as though fully set
forth herein.
plaintiff economic damage and/or at all times to further their own economic
plaintiff has incurred damages in that plaintiff was induced to invest in the
movie investment scheme, all by reason of which plaintiff has been damaged in at
least the sum in excess of the jurisdictional amount of this Court, plus
attorneys fees and costs, and additional amounts according to proof at time of
RESCISSION
Under Section 25501 of the California Corporations Code and Common Law
contained in the General Allegations and all previous paragraphs of all previous
sections and Causes of Action this Complaint, inclusive, as though fully set
forth herein.
69. Section 25501 of the California Corporations Code provides that any
person who violates Section 25401 shall be liable to the person who purchases a
security from him or sells a security to him, and the purchaser may sue either
for rescission or for damages. Section 25501 further provides that upon
rescission, a purchaser may recover the consideration paid for the security plus
made and issued contrary to both an express provision of law and contrary to the
policy of express law in that it was offered and sold in violation of section
25401 of the California Corporations Code, and constitutes the offer and
71. The public interest will be prejudiced if the above instruments are
the dealings between corporate issuers and their shareholders requires that any
72. Plaintiff will suffer substantial harm and injury under the letter
plaintiff, specifically the sum of $50,000.00 plus interest, attorney fees and
74. As a result of the movie investment scheme and entering into the
herein alleged, plaintiff has incurred damages in that plaintiff was induced to
plaintiff thereon.
76. As a further proximate result of the fraudulent conduct of defendant
as herein alleged, plaintiff has incurred damages in that plaintiff was induced
to invest in the YYY investment scheme, all by reason of which plaintiff has
been damaged in at least the sum in excess of the jurisdictional amount of this
Court, plus attorneys fees and costs, and additional amounts according to proof
REFORMATION
contained in the General Allegations and all previous paragraphs of all previous
sections and Causes of Action this Complaint, inclusive, as though fully set
forth herein.
78. The Letter Agreement fails to reflect the true intent and bargain relied
79. The above-described failure of the Letter Agreement to reflect the true
intent and bargain relied upon by plaintiff resulted from defendant's false
embodied the true intent and bargain relied upon by plaintiff in making its
false representations, plaintiff was deceived and misled into signing writings
that differed materially from the true intent and bargain relied upon by
81. Plaintiff prays that the Letter Agreement be reformed to reflect the
Code
contained in the General Allegations and all previous paragraphs of all previous
sections and Causes of Action this Complaint, inclusive, as though fully set
forth herein.
of 1933, section 10(b) of the Exchange Act of 1934 and Rule 10b-5 thereunder,
and sections 25401 and 25501 of the California Corporation Code, and issued
of the Securities Act of 1933, section 10(b) of the Exchange Act of 1934 and
Rule 10b-5 thereunder, and sections 25401 and 25501 of the California
section 5(a) and 5(c) of the Securities Act of 1933. The business practice of
defendants is unlawful and fraudulent and violates Federal law and California
law as alleged herein. Further, defendants, and each of them, knew that their
of Sections 17200 et seq. of the California Business and Professions Code, and,
accordingly, constitutes a violation of Sections 17200 et seq. of the California
was induced to invest in the movie investment scheme, all by reason of which
plaintiff has been damaged in at least the sum in excess of the jurisdictional
amount of this Court, plus attorneys fees and costs, and additional amounts
WHEREFORE, plaintiff prays for judgment as follows on all claims for relief:
trial;
trial;
trial;
trial;
trial;
trial;
trial;
27. For interest in an amount according to proof at time of trial;
trial;
trial;
trial;
from
46. For such other and further relief as this court may deem just and
proper.
DATED:
By: _________________________
Douglas Slain
CERTIFICATION BY CLIENT