SMOLOWE v. DELENDO CORPORATION

No. 191.

136 F.2d 231 (1943)

SMOLOWE et al. v. DELENDO CORPORATION et al.

Circuit Court of Appeals, Second Circuit.

June 8, 1943.


Attorney(s) appearing for the Case

Jack Hart, of New York City (Arthur J. Sleppin, of New York City, on the brief, for Smolowe, and Samuel A. Mehlman, of New York City, on the brief, for Levy), for plaintiffs-appellees.

Jay Leo Rothschild, of New York City (Louis Rivkin, of New York City, on the brief), for defendants-appellants.

Chester T. Lane, Sp. Asst. to Atty. Gen. (Mathias F. Correa, U. S. Atty., and William L. Lynch, Asst. U. S. Atty., both of New York City, Francis M. Shea, Asst. Atty. Gen., Sidney J. Kaplan, Sp. Asst. to Atty. Gen., and Donald R. Seawell, of Washington, D. C., and John F. Davis, Sol., Milton V. Freeman, Asst. Sol., Milton P. Kroll, and W. Victor Rodin, Securities and Exchange Commission, all of Philadelphia, Pa., on the brief), for United States, intervenor-appellee.

Before SWAN, CHASE, and CLARK, Circuit Judges.


CLARK, Circuit Judge.

The issue on appeal is solely one of the construction and constitutionality of § 16 (b) of the Securities Exchange Act of 1934, 15 U.S.C.A. § 78p(b), rendering directors, officers, and principal stockholders liable to their corporation for profits realized from security tradings within any six months' period. Plaintiffs, Smolowe and Levy, stockholders of the Delendo Corporation, brought separate...

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