“Corps.C. sec. 2540 makes it unlawful for anyone ‘to offer or sell a security in this state, or to buy or offer to buy a security in this state, by means of any written or oral communication that includes an untrue statement of a material fact or omits to state a material fact necessary to make the statements made, in the light of the circumstances under which the statements were made, not misleading.'”
[California Practice Guide: Civil Procedure Before Trail Claims & Defenses [citations to primary sources omitted]]
