Friese v. Superior Court
California Court of Appeal, Fourth District
36 Cal.Rptr.3d 558 (2005)
Robert Friese (plaintiff) is the trustee of the successor entity to Peregrine Systems, Inc. (Peregrine), a Delaware corporation that was based in California. Friese alleges that a group of former directors and managers (defendants) engaged in illegal insider trading in 1999 when they sold stock knowing that Peregrine’s public statements had deliberately exaggerated the company’s profit margins. California’s securities laws (§§ 25402 and 25502.5) prohibit directors and other insiders from trading in the state on information that is not publicly available. Another statute, § 2116, codifies the internal affairs doctrine. Friese sued the defendants for violating § 25502.5, among other charges. The defendants moved to dismiss the insider trading charges, arguing that § 2116 requires the court to apply Delaware law, which lacks a comparable insider trading ban. The trial court granted the defendants’ motion to dismiss. Friese petitioned the appellate court for a writ of mandate to set aside the trial court’s ruling. The appellate court agreed to consider the matter.
Rule of Law
Holding and Reasoning (Benke, C.J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 174,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 14,000 briefs, keyed to 188 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.