Sales Of Hotel Units Weren't Securities, 9th Circ. Rules

Law360, Los Angeles (August 13, 2013, 7:09 PM ET) -- The Ninth Circuit on Tuesday dismissed a putative class action alleging that the operator of San Diego's Hard Rock Hotel caused buyers of its condominium-style units to lose millions of dollars, ruling that the units' sales didn't amount to securities sales.

Upholding a California federal court's ruling, a three-judge panel found that an eight- to 15-month gap between the real estate purchase and the execution of a rental management agreement meant that the transactions were distinct and thus didn't constitute the sale of a security....
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