Cal. Codes » Corporations Code / TITLE 4. SECURITIES / DIVISION 1. CORPORATE SECURITIES LAW OF 1968 / PART 6. ENFORCEMENT / CHAPTER 1. Civil Liability
California Codes

Cal. Corporations Code § 25504 (2026)

Civil Liability

✓ current as of May 2026
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Every person who directly or indirectly controls a person liable under Section 25501 or 25503, every partner in a firm so liable, every principal executive officer or director of a corporation so liable, every person occupying a similar status or performing similar functions, every employee of a person so liable who materially aids in the act or transaction constituting the violation, and every broker-dealer or agent who materially aids in the act or transaction constituting the violation, are also liable jointly and severally with and to the same extent as such person, unless the other person who is so liable had no knowledge of or reasonable grounds to believe in the existence of the facts by reason of which the liability is alleged to exist.

Notes of Decisions
Cited in 36 cases (6 in the last 5 years), 1973–2025 · leading case: In Re Heritage Bond Litig., 289 F. Supp. 2d 1132 (C.D. Cal. 2003).
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In Re Heritage Bond Litig., 289 F. Supp. 2d 1132 (C.D. Cal. 2003). · cites it 6× “f The Securities Exchange Act of 1934, against Heritage Principals (Kasirer, Goldstein and Bertolini), HHD, and Miller & Schroeder Principals as to the Official Statements for the Last Eight (8) Heritage Bond Offerings Dated from December 22,1997 to March 11,1999; (3) Violations…”
In re Nat'l Century Fin. Enter., Inc., Inv. Litig., 846 F. Supp. 2d 828 (S.D. Ohio 2012). · cites it 5× “§ 44-2003(A) (imposing liability on those who “made, participated in or induced the unlawful sale”); Cal. Corp. Code § 25504 (“materially aids”); Conn.”
Anschutz Corp. v. Merrill Lynch & Co., 690 F.3d 98 (2d Cir. 2012). “” Cal. Corp. Code § 25504 (West 2006). 12 .”
Jackson v. Fischer, 931 F. Supp. 2d 1049 (N.D. Cal. 2013). · cites it 3× “Code § 25401 and 25501 (against all defendants); (4) violation of Cal. Corp.Code § 25504 (against all defendants); (5) breach of fiduciary duty (against J.”
Tamer Salameh v. Tarsadia Hotel, 726 F.3d 1124 (9th Cir. 2013). “1; (4) misrepresentation and omission in violation of California Corporations Code §§ 25401, 25501, and 25504.”
Vallejo Sanitation & Flood Control Dist. v. Fuld, 903 F. Supp. 2d 152 (S.D.N.Y. 2012). · cites it 2× “23 *167 All but three of the Underwriter Defendants challenge the only claim in the CFAC in which they are named, that under California Corporations Code Section 25504.”
Fed. Sec. L. Rep. P 93,959 Frank Lanza, Jr. v. Drexel & Co., Theodore J. Kircher & Christie F. Vitolo, 479 F.2d 1277 (2d Cir. 1973). “§ 67-1256 (b) (1966); Cal.Corp.Code § 25504 (West Supp.1973); Col.”
In Re Washington Mut., Inc., 462 B.R. 137 (Bankr. D. Del. 2011). · cites it 2× “14, 1998) (finding that culpable participation is a required element of control person liability claims under California Corporations Code section 25504).”
Christopher T. v. Fiserv Correspondent Servs., Inc., 183 F. Supp. 2d 1245 (D. Or. 2001). · cites it 3× “430(3) and Cal.Corp.Code § 25504, Fiserv was jointly and severally liable to Plaintiffs for the full amount of damages, plus interest, costs, and fees.”
In Re Activision Sec. Litig., 621 F. Supp. 415 (N.D. Cal. 1985). “§ 78j claims are DENIED; *439 4) The motions of the underwriter class (a) to dismiss the § 12(2) claim are GRANTED with prejudice insofar as they relate to Morgan Stanley; (b) to dismiss the claims under Cal. Corp.Code §§ 25504 and 25504.1 are GRANTED with prejudice; (c) to…”
Coffey v. Ripple Labs Inc., 333 F. Supp. 3d 952 (N.D. Cal. 2018). “Code §§ 25110 & 25503 for the unregistered offer and sale of securities; (3) violation of § 15 of the Securities Act (control person liability); and (4) violation of Cal. Corp. Code § 25504 (control person liability).”
Louisiana Pac. Corp. v. Money Mkt. 1 Institutional Inv. Dealer, 851 F. Supp. 2d 512 (S.D.N.Y. 2012). “See Cal. Corp.Code § 25504 (providing for control person liability predicated upon an underlying violation).”
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