The opinion of the court was delivered by: Present: The Honorable R. Gary Klausner, United States District Judge
Sharon L. Williams Not Reported N/A
Deputy Clerk Court Reporter / Recorder Tape No.
Attorneys Present for Plaintiffs: Attorneys Present for Defendants:
Proceedings: (IN CHAMBERS) Order Re: Plaintiff's Motion for Remand (DE 11)
On June 5, 2012, Thomas J. Gearing and the T.J.G. Private Annuity Trust ("Trust"), with Rosemary Gearing serving as its Trustee (collectively, "Plaintiffs"), filed a Complaint against China Agritech, Inc. ("Agritech"), Kabani and Company ("Kabani"), Crowe Horwatch ("Crowe")(together, "Auditor Defendants"), and a number of Individual Defendants (collectively, "Defendants") in the Superior Court for the County of Los Angeles. Plaintiffs allege claims for
(1) fraud, (2) negligence, (3) negligent misrepresentation, and (4) unjust enrichment.
On June 8, 2012, Agritech filed a Notice of Appearance and Acceptance of Service and removed the case to this Court on the grounds of diversity jurisdiction. The Auditor Defendants and the Individual Defendants have yet to be served.
Presently before the Court is Plaintiffs' Motion to Remand ("Motion"). For the following reasons, the Court GRANTS Plaintiffs' Motion.
Agritech is a holding company incorporated in Delaware with its principal place of business in Beijing, China. Agritech's subsidiaries manufacture and distribute organic compound fertilizers for agricultural use in China. Kabani and Crowe are former auditors of Agritech. Kabani is incorporated in California and has its principal place of business in California. Crowe is an independent member of Crowe Horwath International. Each member firm of Crowe Horwath International operates as a separate and independent legal entity.*fn1 Plaintiff Thomas Gearing is a citizen of Nevada and the Trust's citizenship is based on that of its Trustee, Rosemary Gearing.
Plaintiffs allege that in January 2011, they purchased 35,207 shares of Agritech stock. Plaintiffs allege that they purchased the stock at an inflated price because Agritech filed fraudulent records with the United States Securities Exchange Commission. Upon discovery of the alleged fraudulent disclosures, Plaintiffs ...