Genius Brands Investors Keep Broadcast Frequency Claim Afloat

Genius Brands International Inc. investors can proceed with a claim that the cartoon maker overstated the frequency of its Rainbow Rangers show’s airing, a federal court ruled.

But the investors fell short in alleging several other aspects of the securities fraud suit, Judge Dale Fischer said Tuesday for the US District Court for the Central District of California. The decision is the court’s second assessing the claims since the case was revived on appeal.

Fischer dismissed claims that Genius hid a promotional relationship with PennyStocks.com, misrepresented that it would be acquired by The Walt Disney Co. or Netflix Inc., and ...