Opinion ID: 324093
Heading Depth: 1
Heading Rank: 1

Heading: elias, riesenbach & sher

Text: 7 Elias, Riesenbach and Sher are alleged to have sold 'worthless' companies to 3 I Co., and to have 'falsely and deceptively declare(d) to the investing public that (3 I Co.'s purchase of these companies) was a major viable acquisition.' Such statements clearly fail to allege 'the circumstances constituting fraud . . . with particularity' as is required by rule 9(b). One of the main purposes of the rule is to apprise a 'defendant of the claim against him and of the acts relied upon as constituting the fraud charged.' 5 C. Wright & A. Miller, Federal Practice & Procedure 1297, at 404 (1969). These allegations are merely conclusory and clearly do not apprise the defendants of the claims made against them. Simply denominating unspecified statements as 'deceptive' and corporations as 'worthless' is not enough. Some further explanation of the allegations is necessary to indicate how they constitute fraud. The district court correctly concluded that these allegations failed to satisfy rule 9(b). Segal v. Gordon, supra, 467 F.2d at 608.