CA AB2178

Authorizes crowdfunding permit qualifications for securities offerings under $1,000,000 (less certain prior sales) sold through registered intermediaries with investor caps of $5,000 or 10% net worth per investor.

Imposes filing fee of $200 plus 1/5 of 2% of aggregate securities value for crowdfunding permits; requires three-day rescission rights, escrow accounts, and prohibits direct/unsolicited solicitation.

Extends liability provisions to crowdfunding permit violations, authorizing courts to award reasonable attorney's fees, costs, and treble/punitive damages to prevailing purchasers.

Eliminates scienter requirement for securities fraud liability under Section 25401, allowing plaintiffs to recover damages without proving defendant's intent to defraud.

Requires crowdfunding offerings through single intermediary platform only, with Form U-7 disclosure documents, two-year restrictions on stock splits/mergers, and fiduciary obligations owed to investors.