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DONLON INDUSTRIES, INC. v. FORTE

Nos. 42/43, Dockets 32349/32350.

402 F.2d 935 (1968)

DONLON INDUSTRIES, INC., Plaintiff-Appellee, v. Michael FORTE and Gerald Ehrlich, Defendants, and Tessel, Paturick & Ostrau, Inc., and Lionel Weiser, Defendants-Appellants.

United States Court of Appeals Second Circuit.

Decided October 4, 1968.

Attorney(s) appearing for the Case

Robert Morvillo, Oceanside (Reavis & McGrath, New York City, Leonard M. Leiman, Stephen R. Steinberg, New York City, of counsel), for Defendants-Appellants Tessel, Paturick & Ostrau, Inc., and Lionel Weiser.

Alfred V. Greco, New York City (Frutkin & Frutkin, New York City; Louis B. Frutkin, New York City, of counsel), for Plaintiff-Appellee.

Before MOORE, FRIENDLY and FEINBERG, Circuit Judges.

FRIENDLY, Chief Judge:

In this action in the District Court for the Southern District of New York relating to the purchase of stock of Lieco, Inc., plaintiff alleged that defendants had violated § 17(a) of the Securities Act of 1933 and § 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Appellants Tessel, Paturick & Ostrau, Inc. (TPO) and Weiser, its vice-president, who asserted they were only intermediaries, moved to dismiss the...

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