For Your Data Birnbaum V. Newport Steel Corp. Representative Brief

Birnbaum v. Newport Steel Corp. instance brief summary
193 F.2d 461 (1952)

CASE SYNOPSIS

Appellants sought review of an social club from the the States District Court (New York), inward which the courtroom dismissed appellants' claims of violation of the Securities Exchange Act of 1934, 15 U.S.C.S. § 78j(b), in addition to S.E.C. Rule 10B-5, 17 C.F.R. § 240.10b-5 (1949).

CASE FACTS
Appellants brought accommodate against appellee, alleging violation of the Securities Exchange Act of 1934, 15 U.S.C.S. § 78j(b), in addition to S.E.C. Rule 10B-5, 17 C.F.R. § 240.10b-5 (1949). The district courtroom held that Rule 10b-5 did non use to fraud perpetrated upon the purchaser or seller of securities in addition to had no relation to breaches of fiduciary duty yesteryear corporate insiders resulting inward fraud upon those who were non purchasers or sellers.

DISCUSSION

• The appeals courtroom agreed amongst the district courtroom in addition to affirmed the judgment. 
• The appeals courtroom held that the Act was directed alone at the type of misrepresentation or fraudulent practise unremarkably associated amongst the sale or buy of securities, rather than at fraudulent mismanagement of corporate affairs. 
• The courtroom farther held that Rule 10b-5 extended protection exactly to the defrauded purchaser or seller.

CONCLUSION
The appeals courtroom affirmed the lower court's judgment.

Recommended Supplements for Corporations in addition to Business Associations Law

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