ROBERT W. STARK, JR., INC. v. NEW YORK STOCK EXCHANGE, INC.

No. 928, Docket 72-1810.

466 F.2d 743 (1972)

ROBERT W. STARK, JR., INC., Robert W. Stark, Jr., Plaintiffs-Appellants, and Kansas City Securities Corporation, Plaintiff, v. NEW YORK STOCK EXCHANGE, INC. et al., Defendants-Appellees.

United States Court of Appeals, Second Circuit.

Decided August 29, 1972.


Attorney(s) appearing for the Case

George D. Reycraft, New York City (Cadwalader, Wickersham & Taft, P. Jay Flocken and Haven C. Roosevelt, New York City, on brief), for plaintiffs-appellants.

William E. Jackson, New York City (Milbank, Tweed, Hadley & McCloy, Floyd E. Brandow, Jr., and Isaac Shapiro, New York City, on brief), for defendant-appellee New York Stock Exchange, Inc.

Alan Blank, Sp. Counsel, Securities and Exchange Commission, Washington, D. C. (Walter P. North, Acting Gen. Counsel, Washington, D. C., on brief), for Securities and Exchange Commission, amicus curiae.

Before MANSFIELD and TIMBERS, Circuit Judges and GURFEIN, District Judge.


PER CURIAM:

On July 6, 1972 the Board of Governors of the New York Stock Exchange (Exchange), following a hearing in accordance with its Constitution, unanimously voted to expel from Exchange membership Robert W. Stark, Jr., a member, and Robert W. Stark, Jr., Inc., a member corporation. The expulsion arose out of a recapitalization of Stark, Inc. by Kansas City Securities Corporation (KCSC) in violation of the Exchange's Rule 318, which imposes upon members a "parent...

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