LOS ANGELES, CA / ACCESSWIRE / July 1, 2015 / Ironridge Global IV, Ltd., an institutional investor in micro-cap public companies, today announced that the Court of Appeal of the State of California has issued a published legal decision in its favor, dismissing the frivolous accusations made by ScripsAmerica, Inc. (SCRC) that Ironridge Global violated federal securities laws. A copy of the court's decision is available here on the court's website.
ScripsAmerica claimed that Ironridge had engaged in manipulative trading activity designed to artificially depress the value of its stock, and thereby yield grossly unfair levels of issuance of stock to Ironridge Global, and that further issuances could be in violation of securities law. In dismissing SCRC's appeal, the court noted that there "are state and federal provisions that exempt shares of common stock from registration requirements and other restrictions if transferred, with court approval, to satisfy a claim or debt" under Section 3(a)(10) of the Securities Act (15 U.S.C. § 77c, subd. (a)(10); Cal. Corp. Code, § 25017, subd. (f)(3).)
In finding in favor of Ironridge Global IV, the court further found that the "evidence" against Ironridge "consisted of a hearsay online article accusing it of manipulative trading activity, and an unauthenticated November 8, 2013 letter to SCRC's transfer agent, instructing it to issue shares to Ironridge. Also included was an unauthenticated letter from ScripsAmerica's securities counsel, advising that the unregistered distribution of shares to Ironridge Global might violate federal securities law. ScripsAmerica also included press releases by the Securities and Exchange Commission (SEC) concerning settlements it made for civil proceedings commenced against entities who had abused the exemption provided for by Section 3(a)(10) of the Securities Act."
After a thorough review of the facts and the law, a three judge panel of the court of appeal unanimously found that the arguments against Ironridge Global IV, Ltd. "are plainly without merit."
In addition to this most recent victory in state court, the federal court also previously issued a published legal decision in favor of Ironridge Global Partners, LLC on similar claims in ScripsAmerica, Inc. v. Ironridge Global LLC, 56 F. Supp. 3d 1121 (C.D. Cal. 2014). Ruling in favor of Ironridge, the United States District Court for the Central District of California noted that "Section 3(a)(10) of the Securities Act of 1933 exempts from registration any security which is issued in exchange for one or more bona fide outstanding securities, claims or property interests."
The federal court found that the allegations against Ironridge "are conclusory and fail to raise the claim above the speculative level. Certainly, they do not give rise to a cogent and compelling inference of intent or knowledge of wrongdoing." The court concluded, "that lronridge did not intend to deceive, and that Scrips knew-or should have known-the nature of the transaction into which it had entered."
About Ironridge Global
Ironridge Global IV, Ltd. is an institutional investor making direct equity investments in micro-cap public companies. Ironridge Global has completed over 60 transactions since 2011, ranging from under a quarter million to $25 million each, for Nasdaq, NYSE MKT, OTCQB and Pink Sheets companies. For more information about Ironridge Global IV, please visit http://www.ironridgeglobal.com/.
SOURCE: Ironridge Global IV, Ltd.