11th Circ. Splits Over Condos As Investment Contracts

Law360, New York (October 27, 2011, 7:58 PM EDT) -- The Eleventh Circuit on Thursday affirmed the dismissal of two suits accusing a Florida builder and real estate broker of luring condominium buyers into a fraudulent investment contract, just one day after the appeals court reached the opposite conclusion in an almost identical dispute.

The Middle District of Florida had ruled in all three suits that the transactions at issue — purchase agreements for resort condominiums in the Orlando area — were not investment contracts and could not be subject to federal securities law.

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