New Hampshire

Blue Chip Stamps v. Manor Drug Stores in New Hampshire Law

How Blue Chip Stamps v. Manor Drug Stores applies in New Hampshire: state-specific rules, key cases, and bar exam notes for Securities Law.

State Approach

New Hampshire law aligns with the principles set forth in Blue Chip Stamps v. Manor Drug Stores, particularly in defining standing in private securities fraud actions. The state emphasizes that only purchasers or sellers of a security can bring suit under its securities statutes, mirroring the federal approach.

State Rule
In New Hampshire, only those who have actually bought or sold a security may bring a private action under RSA 421-B, which reflects the federal requirement established in Blue Chip Stamps.
Significant State Cases

In re Fortune Natural Resources Corp.

The court ruled that only investors who engaged in transactions involving securities had standing to sue for securities fraud claims.

In Re: Teligent, Inc.

Affirmed that a plaintiff must show actual purchase or sale of the securities involved to establish standing under state law.

State v. American Continental Corp.

Established that non-accredited investors lacked standing for claims under the state securities act when they had not engaged in the purchase or sale of securities.

Comparison to Federal Law

New Hampshire's approach closely parallels the federal standard established in Blue Chip Stamps, emphasizing that only actual purchasers or sellers can seek relief for securities fraud. Both frameworks focus on ensuring that only those directly involved in the transaction have the requisite standing to bring forth claims.

Bar Exam Note

Understanding the standing requirements laid out in Blue Chip Stamps is crucial for the New Hampshire bar exam, particularly under the state’s RSA 421-B securities laws where similar principles apply.

Practice Pointers
  • Always confirm whether the plaintiff bought or sold the security in question before proceeding with a claim under state securities law.
  • Familiarize yourself with RSA 421-B and its provisions to identify potential securities litigation.
  • Evaluate the nature of the plaintiff's involvement in transactions to properly assess standing in securities law cases.

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