I prolly have this all bolluxed up, but I think the Garcia's picked which shells to sue, based on a combination of
who they interacted with (where the trail leads of evidence)
where they interacted, where the fraud occurred-part of doing business, and the super power building is (Florida, which was where Flag is),
where the actors "do business" (where trust is registered.. but then cherch claims it got registered by mistake in the wrong place once, but really belongs in California)
cherch says, where trusts do business is some how separate from the above Florida activity and registration trail, due to the majority of trust employees being physically in California, and most business being done in California even though the Garcia's actual fundraising was done in Florida with the Garcias, but that doesn't matter to subject matter jurisdiction anyway, since for 'trusts' instead should be residences of "trustees" in California, nondiverse like Garcias, so therefore,
to sue the trusts, no diversity, doesn't belong in federal court, and needs to go to California. this could make it sound like cherch wants to spare Flag, separate Flag from the trusts, make two separate cases. But I think Garcias are saying Flag was intimately involved. I don't hear cherch saying Flag was not involved. I hear cherch not denying trusts were involved. so that's my confusion. it sounds like cherch is admitting they are all in it together...