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GANN v. BERNZOMATIC CORPORATION

No. 65 Civ. 3905.

262 F.Supp. 301 (1966)

John L. GANN et al., Plaintiffs, v. BERNZOMATIC CORPORATION, Sidney J. Reich, Joel Reich, Helene Reich, Gordon Hoit, Lester G. Wilterdink, Herman Schwartz, William A. Centner, and Jacob Ark, Defendants.

United States District Court S. D. New York.

July 15, 1966.

Attorney(s) appearing for the Case

Milton Pollack, New York City, for plaintiffs; Samuel N. Greenspoon, New York City, of counsel.

Townsend & Lewis, New York City, for defendants, other than Herman Schwartz; Eliot H. Lumbard, Michael A. Berch, New York City, of counsel.

OPINION

McLEAN, District Judge.

This is an action by 171 plaintiffs to recover damages which they allegedly suffered through the purchase of common stock of defendant BernzOmatic Corporation ("BernzOmatic"). The action purports to be based both upon the Securities Exchange Act of 1934, Sections 10(b), 18(a) and Rule 10b-5 thereunder, and upon common law principles of fraud and deceit. Defendants move under Rule 12(b) (6) to dismiss the action for failure...

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