Mansbach V. Prescott

Plaintiff-appellant, Gerald Mansbach, brought this action against Prescott, Ball & Turben (PBT), a regional securities broker-dealer, and its general partners. The complaint alleged various violations of the federal securities laws and corresponding state law claims based on diversity jurisdiction. The district court dismissed the federal claims for failure to state a claim upon which relief can be granted and stayed proceedings on the state claims pending arbitration. We reverse.