Defendant/Cross-Defendant Solestage Inc.’s demurrer to the Cross-Complaint by Xurui Wang is SUSTAINED with leave as to the second cause of action and SUSTAINED without leave as to the first cause of action.

Defendant Solestage Inc.’s motion for sanctions is DENIED without prejudice.

On February 13, 2019, Plaintiffs Yie-Ming Hong (“Hong”) and Eric M. Chwa (“Chwa”) (collectively “Plaintiffs’) brought the instant suit against Defendants Xurui Wang (“Wang”), Shu Jun Zhang (“Zhang”), Solestage Inc. (“Solestage”), WHZ Shopping Inc. (“WHZ”), East West Bank (“EWB”), Citibank N.A. (“Citibank”), and Bank of America N.A. (“BOA”). Plaintiffs allege that Wang perpetrated a fraud against Plaintiffs in order to obtain a $1.2 million loan from Plaintiffs using Wang's real property located at 2008 North Western Avenue, Los Angeles (the “property”) as collateral. The operative First Amended Complaint (“FAC”) alleges nine causes of action for: 1) declaratory relief; 2) fraud; 3) negligent misrepresenta