Exchange Act Covers Stock Float Fraud, Judge Says

Law360, New York (January 28, 2013, 4:50 PM EST) -- A Pennsylvania federal judge on Friday said the Securities and Exchange Act applies to schemes to manipulate stock float and not just misrepresentations about share sales, ruling that litigation between VitaminSpice Inc. investors and the company's heads must continue.

The investors, who allege VitaminSpice wrongly blocked them from selling their shares, asked the court to toss allegations that they too had committed fraud by masquerading as independent companies when they actually were puppeted by a central entity controlling a sizeable share of the stock's float. But...
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