9th Circ. Hotel-Condo Ruling Eases Developers' SEC Worries

Law360, New York (August 16, 2013, 7:48 PM EDT) -- The Ninth Circuit's ruling earlier this week that condo-style units sold at San Diego's Hard Rock Hotel could not be considered securities for the purpose of fraud claims let hotel-condo developers breathe a sigh of relief and provided further guidance on how to avoid registering unit sales with the SEC, experts say.

The ruling — which found that an eight-to-15-month gap between the real estate purchase of the units and the execution of a rental management agreement meant that the deals did not constitute securities transactions...
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