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McMAHAN & CO. v. WHEREHOUSE ENTERTAINMENT, INC.

No. 1707, Docket 95-7008.

65 F.3d 1044 (1995)

McMAHAN & COMPANY; Froley, Revy Investment Co., Inc.; Wechsler & Krumholz, Inc.; and Don Thompson, on behalf of himself and all others similarly situated, Plaintiffs-Appellees, v. WHEREHOUSE ENTERTAINMENT, INC.; Louis A. Kwiker; George A. Smith; Michael T. O'Kane; Lawrence K. Harris; Donald E. Martin; Joel D. Tauber; Furman Selz Mager Dietz & Birney, Inc.; WEI Acquisition Corp.; WEI Holdings, Inc.; and Adler & Shaykin, Defendants-Appellants.

United States Court of Appeals, Second Circuit.

Decided September 13, 1995.

Attorney(s) appearing for the Case

Philip K. Howard, New York City (Linda C. Goldstein, Howard, Darby & Levin, New York City, Judith L. Spanier, Abbey & Ellis, New York City, of counsel), for Plaintiffs-Appellees.

Dennis J. Block, New York City (Joseph S. Allerhand, Miranda S. Schiller, Howard L. Kneller, Weil, Gotshal & Manges, New York City of counsel), for Defendants-Appellants.

Simon M. Lorne, General Counsel, Jacob H. Stillman, Assoc. Gen. Counsel, Susan S. McDonald, Special Counsel, Diane V. White, Senior Counsel, and Paul Gonson, Solicitor, Securities and Exchange Commission, Washington, DC, submitted a brief as amicus curiae for the Securities & Exchange Commission.

Before: OAKES, MINER, and LEVAL, Circuit Judges.

MINER, Circuit Judge:

Defendants-appellants appeal from an order entered on August 12, 1994 in the United States District Court for the Southern District of New York (Lowe, J.) denying, in part, defendants' motion for summary judgment, the court having determined, inter alia, that benefit-of-the-bargain damages are available to plaintiffs under section 11 of the Securities Act of 1933 (the "1933 Act") and under section 10 of the Securities Exchange Act of 1934...

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