As a general rule, simple disputes involving securities relating to Article 8 are normally litigated in state courts, which can be far more difficult to research than the federal court system. Based upon our research, it appears that litigation involving Article 8 of the UCC in the Federal Court system is relatively rare. As result, we have decided to publish the Trial Brief of our litigation against Sun River Energy, Inc. involving a dispute involving Article 8, Section 401 of the UCC. Hopefully, this provide some useful information to anyone who is involved in a dispute over the removal of a restrictive legend and Article 8, Section 401, UCC 8-401.
Tag: UCC 8-401
Article 8, Section 401 of the Uniform Commercial Code (UCC). This section addresses the Duty of an Issuer to Register Transfer securities. There are seven (7) requirements to Section 401 that need to be meet in order for an issuer to have a duty to register transfer shares. When litigation arises over a request to have restrictive legend removed from a stock certificate, it is Section 401 of Article 8 that decides if the restrictive legend is to be removed. Our blog takes a look at issues surrounding the Section 401, and its seven requirements for an issuer to register transfer shares. We feel that our litigation against Sun River Energy involving UCC 8-401 provides us valuable insight on this issue.
Coral Capital Partners Victorious in Sun River Energy Litigation
Coral Capital Partners details the history and the outcome of its litigation with Sun River Energy, Inc. Civil Action No. 11-CV-00198-MSK-MEH In early 2011 Sun River Energy attempted to prevent us from selling shares of its common stock we were legally issued and entitled to sell. This litigation should have been a simple issue regarding UCC 8-403 to be decided by the court. However, Sun River Energy struck first with numerous frivolous and meritless claims, and we feel compelled to set the record straight.