FEIT v. LEASCO DATA PROCESSING EQUIPMENT CORPORATION

No. 69 Civ. 1329.

332 F.Supp. 544 (1971)

Dudley FEIT, Plaintiff, v. LEASCO DATA PROCESSING EQUIPMENT CORPORATION et al., Defendants.

United States District Court, E. D. New York.

August 26, 1971.


Attorney(s) appearing for the Case

Sidney B. Silverman, New York City, for plaintiff; Joan T. Harnes, Jewel H. Bjork, New York City, of counsel.

Willkie, Farr & Gallagher, New York City, for Leasco Data; Anthony Phillips, L. Robert Griffin, New York City, of counsel.

Simpson, Thacher & Bartlett, New York City, for Lehman Brothers; Rogers Doering, Charles Edelman, Dean C. Rohrer, New York City, of counsel.

Shearman & Sterling, New York City, for White Weld; Robert F. Dobbin, Joseph McLaughlin, New York City, of counsel.


MEMORANDUM AND ORDER

WEINSTEIN, District Judge.

This case raises the question of the degree of candor required of issuers of securities who offer their shares in exchange for those of other companies in take-over operations. Defendants' registration statement was, we find, misleading in a material way. While disclosing masses of facts and figures, it failed to reveal one critical consideration that weighed heavily with those responsible for the issue—...

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