Opinion ID: 1277726
Heading Depth: 2
Heading Rank: 3

Heading: The petition for writ of mandate.

Text: StorMedia and the six individual defendants filed the instant petition for writ of mandate in the Court of Appeal for the Sixth District. The petition sought to set aside the superior court order to the extent that it overruled their demurrers on the grounds that: (1) the section 25500 remedy for violation of section 25400 is available only to persons who purchased or sold stock in California; (2) a person who purchased previously issued common stock on the open market may not recover damages for violation of subdivision (d) of section 25400 from a corporation that did not conduct a stock offering or otherwise sell its stock to the general public during the period in which the price of its stock was affected by its market manipulation activities; and (3) to the extent that sections 25400 and 25500 impose liability based on conduct that is immunized by the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995 (15 U.S.C. § 78u-5(c)), California law is preempted. [6] The Court of Appeal, after soliciting opposition, summarily denied the petition. (See Code Civ. Proc., § 1085.) This court granted defendants' petition for review and issued an order to show cause why the relief sought should not be granted. Plaintiffs, the real parties in interest, have filed a consolidated demurrer to the petition and return to the order to show cause. [7]