8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

1/70

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 1 of 70 Page ID #:5

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

2/70

1

2

3

45

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

2324

25

26

27

28

 

ATTORNEYS AT LAW  

LOS ANGELES  

2NOTICE OF REMOVALOF ACTION

TO THE CLERK OF THIS COURT, ALL PARTIES, AND THEIR

ATTORNEYS OF RECORD:

PLEASE TAKE NOTICE that pursuant to 28 U.S.C. § 1441 and 15 U.S.C.

§§ 77v(a) and 77p(c), defendants Pacific Coast Oil Trust; Pacific Coast EnergyCompany LP; PCEC (GP) LLC; Pacific Coast Energy Holdings LLC; Halbert S.

Washburn; and Randall H. Breitenbach (collectively, the “PCOT Defendants”)

hereby remove the above-captioned civil action, and all claims and causes of action

therein, from the Superior Court of California, County of Los Angeles, to the

United States District Court for the Central District of California, Western

Division. The PCOT Defendants appear for purposes of removal only, reserve all

defenses and rights available, and state as follows: 

1.  On July 1, 2014, Plaintiff Thomas Welch (“Plaintiff”), purportedly

acting on his own behalf and on behalf of all others similarly situated, filed the

above-captioned putative class action in the Superior Court of California, County

of Los Angeles. Several of the PCOT Defendants were first-served with a copy of

the complaint and summons on July 10, 2014. None of the PCOT Defendants

were served with a copy of the complaint and summons prior to that date. A true

and correct copy of the summons and the complaint is attached hereto as Exhibit 1.

A true and correct copy of all additional pleadings, court filings, and orders is

attached hereto as Exhibit 2.

2.  This action is within the original jurisdiction of this Court under 28

U.S.C. § 1331 because it includes claims arising under the laws of the United

States. Specifically, Plaintiff asserts claims arising under Sections 11, 12(a)(2),and 15 of the Securities Act of 1933 (the “Securities Act”). (See Compl. ¶¶ 11,

104, 114-17, 121-22.)

3.  Because this is a civil action over which this Court has original

 jurisdiction under 28 U.S.C. § 1331, it is removable under 28 U.S.C. § 1441 and

the Securities Act, as amended by the Securities Litigation Uniform Standards Act

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 2 of 70 Page ID #:6

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

3/70

1

2

3

45

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

2324

25

26

27

28

 

ATTORNEYS AT LAW  

LOS ANGELES  

3NOTICE OF REMOVALOF ACTION

of 1998 (“SLUSA”). In particular, under 28 U.S.C. § 1441(a), “[e]xcept as

otherwise expressly provided by Act of Congress, any civil action brought in a

State court of which the district courts of the United States have original

 jurisdiction, may be removed . . . to the district court of the United Statesembracing the place where such action is pending.”

4.  Prior to the enactment of SLUSA, Section 22(a) of the Securities Act

gave state and federal courts concurrent jurisdiction over civil claims brought

under the Securities Act. SLUSA, however, amended Section 22(a) of the

Securities Act to prohibit concurrent state jurisdiction for certain “covered class

actions” alleging “an untrue statement or omission of a material fact in connection

with the purchase or sale of a covered security” under the Securities Act. See 15

U.S.C. § 77v(a).

5.  SLUSA also amended Section 22(a) to allow for the removal of

certain “covered class actions” arising under the Securities Act. See id .

Specifically, Section 16(c) of the Securities Act provides that “[a]ny covered class

action brought in any State court involving a covered security, as set forth in

subsection (b), shall be removable to the Federal district court for the district in

which the action is pending, and shall be subject to subsection (b).” 15 U.S.C.

§ 77p(c).

6.  Based on these amendments, federal courts alone have jurisdiction to

hear such “covered class actions” raising Securities Act claims, and such “covered

class actions” involving a “covered security” are removable to federal court.

7. 

“Covered class actions” include: “any single lawsuit in which . . . oneor more named parties seeks to recover damages on a representative basis on

behalf of themselves and other unnamed parties similarly situated, and questions of

law or fact common to those persons or members of the prospective class

predominate over any questions affecting only individual persons or members.” 15

U.S.C. § 77p(f)(2)(A)(i)(II). A “covered security” is defined to include securities

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 3 of 70 Page ID #:7

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

4/70

1

2

3

45

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

2324

25

26

27

28

 

ATTORNEYS AT LAW  

LOS ANGELES  

4NOTICE OF REMOVALOF ACTION

listed for trading on the New York Stock Exchange (“NYSE”). See 15 U.S.C.

§ 77p(f)(3); id. § 77r(b)(1).

8.  Plaintiff’s action is a “covered class action” involving a “covered

security.” This action is a “covered class action” because Plaintiff is a named partyseeking to recover damages on a representative basis on behalf of himself and

others similarly situated, and the complaint alleges that questions of law or fact

common to the putative class predominate over individual questions. (See Compl.

 ¶¶ 1, 6, 69, 101.) Further, the securities at issue, the common units of Pacific

Coast Oil Trust, are “covered securit[ies]” because they are listed, and were listed

during the relevant period, on the NYSE. (See id. ¶ 16.)

9.  Accordingly, Plaintiff’s Securities Act claims are removable to the

United States District Court for the Central District of California under 15 U.S.C.

§§ 77p and 77v, and 28 U.S.C. § 1441. See, e.g., Brody v. Homestore, Inc., 240 F.

Supp. 2d 1122 (C.D. Cal. 2003); Lapin v. Facebook, Inc., 2012 U.S. Dist. LEXIS

119924 (N.D. Cal. Aug. 23, 2012); Knox v. Agria Corp., 613 F. Supp. 2d 419, 425

(S.D.N.Y. 2009).

10.  The PCOT Defendants will promptly serve a copy of this Notice on

counsel for Plaintiff and file a copy of this Notice with the Clerk of the Superior

Court of California, County of Los Angeles, pursuant to 28 U.S.C. § 1446(d).

11.  This Notice of Removal is being filed within 30 days of receipt of the

summons and complaint by the PCOT Defendants, and thus, is timely filed under

28 U.S.C. § 1446(b).

12. 

Assignment of the action to the United States District Court for theCentral District of California, Western Division, is appropriate because this action

is being removed from the Superior Court of California, County of Los Angeles.

See id. §§ 1441(a), 1446(a).

13.  Besides the PCOT Defendants, the other defendants, represented by

separate counsel, are Barclays Capital Inc.; Citigroup Global Markets Inc.; Merrill

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 4 of 70 Page ID #:8

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

5/70

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 5 of 70 Page ID #:9

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

6/70

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

7/70

Exhibit 16

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 7 of 70 Page ID #:11

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

8/70

Exhibit 17

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 8 of 70 Page ID #:12

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

9/70

Exhibit 18

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 9 of 70 Page ID #:13

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

10/70

Exhibit 19

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 10 of 70 Page ID #:14

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

11/70

Exhibit 110

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 11 of 70 Page ID #:15

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

12/70

Exhibit 111

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 12 of 70 Page ID #:16

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

13/70

Exhibit 112

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 13 of 70 Page ID #:17

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

14/70

Exhibit 113

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 14 of 70 Page ID #:18

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

15/70

Exhibit 114

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 15 of 70 Page ID #:19

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

16/70

Exhibit 115

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 16 of 70 Page ID #:20

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

17/70

Exhibit 116

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 17 of 70 Page ID #:21

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

18/70

Exhibit 117

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 18 of 70 Page ID #:22

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

19/70

Exhibit 118

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 19 of 70 Page ID #:23

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

20/70

Exhibit 119

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 20 of 70 Page ID #:24

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

21/70

Exhibit 120

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 21 of 70 Page ID #:25

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

22/70

Exhibit 121

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 22 of 70 Page ID #:26

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

23/70

Exhibit 122

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 23 of 70 Page ID #:27

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

24/70

Exhibit 123

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 24 of 70 Page ID #:28

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

25/70

Exhibit 124

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 25 of 70 Page ID #:29

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

26/70

Exhibit 125

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 26 of 70 Page ID #:30

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

27/70

Exhibit 126

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 27 of 70 Page ID #:31

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

28/70

Exhibit 127

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 28 of 70 Page ID #:32

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

29/70

Exhibit 128

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 29 of 70 Page ID #:33

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

30/70

Exhibit 129

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 30 of 70 Page ID #:34

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

31/70

Exhibit 130

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 31 of 70 Page ID #:35

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

32/70

Exhibit 131

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 32 of 70 Page ID #:36

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

33/70

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

34/70

Exhibit 133

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 34 of 70 Page ID #:38

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

35/70

Exhibit 134

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 35 of 70 Page ID #:39

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

36/70

Exhibit 135

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 36 of 70 Page ID #:40

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

37/70

Exhibit 136

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 37 of 70 Page ID #:41

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

38/70

Exhibit 137

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 38 of 70 Page ID #:42

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

39/70

Exhibit 138

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 39 of 70 Page ID #:43

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

40/70

Exhibit 139

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 40 of 70 Page ID #:44

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

41/70

Exhibit 140

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 41 of 70 Page ID #:45

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

42/70

Exhibit 141

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 42 of 70 Page ID #:46

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

43/70

Exhibit 142

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 43 of 70 Page ID #:47

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

44/70

Exhibit 143

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 44 of 70 Page ID #:48

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

45/70

Exhibit 2

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 45 of 70 Page ID #:49

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

46/70

Exhibit 244

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 46 of 70 Page ID #:50

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

47/70

Exhibit 245

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 47 of 70 Page ID #:51

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

48/70

Exhibit 246

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 48 of 70 Page ID #:52

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

49/70

Exhibit 247

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 49 of 70 Page ID #:53

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

50/70

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

51/70

Exhibit 249

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 51 of 70 Page ID #:55

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

52/70

Exhibit 250

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 52 of 70 Page ID #:56

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

53/70

Exhibit 251

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 53 of 70 Page ID #:57

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

54/70

Exhibit 252

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 54 of 70 Page ID #:58

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

55/70

Exhibit 253

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 55 of 70 Page ID #:59

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

56/70

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

57/70

Exhibit 255

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 57 of 70 Page ID #:61

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

58/70

Exhibit 256

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 58 of 70 Page ID #:62

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

59/70

Exhibit 257

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 59 of 70 Page ID #:63

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

60/70

Exhibit 258

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 60 of 70 Page ID #:64

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

61/70

Exhibit 259

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 61 of 70 Page ID #:65

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

62/70

Exhibit 260

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 62 of 70 Page ID #:66

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

63/70

Exhibit 261

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 63 of 70 Page ID #:67

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

64/70

Exhibit 262

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 64 of 70 Page ID #:68

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

65/70

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

66/70

Exhibit 264

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 66 of 70 Page ID #:70

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

67/70

Exhibit 265

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 67 of 70 Page ID #:71

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

68/70

Exhibit 266

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 68 of 70 Page ID #:72

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

69/70

Exhibit 267

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 69 of 70 Page ID #:73

8/9/2019 2014-8-6 .cacd.596503.1.0 COMPLAINT

70/70

Case 2:14-cv-06170-GHK-PLA Document 1 Filed 08/06/14 Page 70 of 70 Page ID #:74