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While it was a "partial" win for BOFI, it is not over by a long shot. The Court simply found that Plaintiff had not specifically related his accusations of wrongdoing to a specific sectional violation of either the Sarbanes-Oxley or Frank Dodd Acts. In other words, the Court found that Plaintiff did not allege which specific facts constituted an alleged violation of which specific sub-section of either act. The Court granted leave to amend by October 17, 2016 to allege the violations more specifically.

The Court did not address the other 8 causes of action under supplemental jurisdiction as it had dismissed the first two, with leave to amend.

What does this mean? Plaintiff has until 10/17/16 to file a First Amended Complaint to state which alleged wrongful acts violated specific provisions of these acts. While this is a pretty low standard, Defendant could again bring a 12(b)(6) Motion to Dismiss if the allegations are insufficient.

My analysis: This was BOFI's riposte in response to the Complaint, but expect to see a FAC filed by 10/17/16.

DISCLOSURE: I am an attorney but do not practice in this area of law. I hold a position in BOFI.
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