ANGELASTRO v. PRUDENTIAL-BACHE SECURITIES, INC.

Nos. 84-5401, 84-5427.

764 F.2d 939 (1985)

Laura ANGELASTRO, on behalf of herself and all others similarly situated, Appellant in 84-5427, v. PRUDENTIAL-BACHE SECURITIES, INC. and Bache Halsey Stuart Shields, Inc., Appellants in 84-5401.

United States Court of Appeals, Third Circuit.

Decided June 12, 1985.


Attorney(s) appearing for the Case

Richard D. Greenfield, Robert P. Frutkin, Susan Schneider Thomas (argued), Greenfield, Chimicles & Lewis, Haverford, Pa., for appellant in No. 84-5427.

Leonard Barrack, Daniel E. Bacine (argued), Samuel R. Simon, Barrack, Rodos & Bacine, Philadelphia, Pa., for appellants in No. 84-5401.

Daniel L. Goelzer, Gen. Counsel, Jacob H. Stillman, Associate Gen. Counsel, David A. Sirignano (argued), Asst. Gen. Counsel, Gerard S. Citera, Gordon K. Fuller, Washington, D.C., for S.E.C., Amicus Curiae; Paul Gonson, Sol., of counsel.

Before ADAMS, WEIS and WISDOM, Circuit Judges.


OPINION OF THE COURT

ADAMS, Circuit Judge.

This appeal presents the issue whether alleged misrepresentations and nondisclosures by a brokerage firm regarding the credit terms of a margin account fall within the ambit of section 10(b) of the Securities Exchange Act of 1934, 15 U.S.C. § 78j(b) (1982) (Exchange Act), and two rules promulgated thereunder by the Securities and Exchange Commission (SEC). The district court concluded that even if proved such...

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