GREENAPPLE v. DETROIT EDISON CO.

No. 207, Docket 79-7352.

618 F.2d 198 (1980)

Emily GREENAPPLE, Plaintiff-Appellant, v. The DETROIT EDISON COMPANY, Defendant-Appellee.

United States Court of Appeals, Second Circuit.

Decided March 17, 1980.


Attorney(s) appearing for the Case

Melvyn I. Weiss, New York City (David J. Bershad, Jared Specthrie, Jerome M. Congress, Craig L. Tessler, Milberg, Weiss, Bershad & Specthrie, New York City, of counsel), for plaintiff-appellant.

Marvin Schwartz, New York City (Richard J. Urowsky, M. E. Freeman, Sullivan & Cromwell, New York City, of counsel), for defendant-appellee.

Before KAUFMAN, Chief Judge, MANSFIELD and MESKILL, Circuit Judges.


MESKILL, Circuit Judge:

This appeal poses the issue of whether the accounting treatment of the cost of obtaining construction financing, as portrayed in a registration statement containing a prospectus covering appellee Detroit Edison Company's 1972 stock offering, might have misled reasonably prudent investors as to a material aspect of that public utility's financial condition. More particularly, the Court is called upon to decide if the inclusion of the cost of...

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