Ohio Appellate Court Decision on Jurisdiction, Preemption

For those interested in state securities law, the Ohio appellate court recently (12/26/06) issued an opinion dealing with a private offering, purportedly under SEC Rule 506, that used a website to solicit offerees.  The court held that (1) state did not have jurisdiction over certain defendants  where the only contact with the state was a passive website; and (2) state regulation was not preempted simply because the offering was purportedly made under Rule 506.  On the latter issue, the court declined to follow a federal court decision (Temple v. Gorman) to the contrary.  See In re Blue Flame Energy Corp., 2006 WL 3775856(Oh. App. 12/26/06)