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BARNES v. OSOFSKY

Nos. 306-308, Dockets 30867-30869.

373 F.2d 269 (1967)

Arthur BARNES, Plaintiff-Appellee, v. Meyer OSOFSKY et al., Defendants-Appellees. Alfred N. GREENBERG et al., Plaintiffs-Appellees, v. AILEEN, INC., et al., Defendants-Appellees. Reginald SMITH et al., Plaintiffs-Appellees, v. AILEEN, INC., et al., Defendants-Appellees.

United States Court of Appeals Second Circuit.

Decided February 1, 1967.

Attorney(s) appearing for the Case

Milton S. Zeiberg, New York City, for objectants-appellants Fred Zilker and Attilio Occhi.

A. Edward Grashof, New York City (Winthrop, Stimson, Putnam & Roberts, William C. Chanler, New York City, of counsel), for defendants-appellees other than Goodbody & Co.

Frank Weinstein, Weinstein & Levinson, and Richard B. Dannenberg, Lipper, Shinn, Keeley & Dannenberg, New York City (Aaron Lipper, Irving Steinman, Samuel Weinstein, New York City, of counsel), for plaintiffs-appellees.

Philip A. Loomis, Jr., Gen. Counsel, David Ferber, Sol., Richard H. Phillips, Asst. Gen. Counsel, Roy Nerenberg, Washington, D. C., for Securities and Exchange Commission, amicus curiae.

Before LUMBARD, Chief Judge, and FRIENDLY and HAYS, Circuit Judges.

FRIENDLY, Circuit Judge.

Aileen, Inc. is engaged in the design, manufacture and sale of popular priced sports wear for girls and women. Prior to the fall of 1963 it had outstanding 1,019,574 common shares; 205,966 of these, most of them covered by a 1961 registration statement, were traded on the American Stock Exchange, and the balance, 813,608, were owned, in approximately equal proportions, by two officers and directors, Osofsky and Oberlin. Pursuant to a registration...

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