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HOLDSWORTH v. STRONG

No. 75-1144.

545 F.2d 687 (1976)

K. Jay HOLDSWORTH and Dona S. Holdsworth, Plaintiffs-Appellees, v. Kline D. STRONG, Defendant-Appellant. SECURITIES AND EXCHANGE COMMISSION, Amicus Curiae.

United States Court of Appeals, Tenth Circuit.

Decided September 29, 1976.

Rehearing Denied November 19, 1976.

Attorney(s) appearing for the Case

Edwin S. Kahn, of Holland & Hart, Denver, Colo. (Clifford L. Ashton and Brent M. Stevenson, of Van Cott, Bagley, Cornwall & McCarthy, Salt Lake City, Utah, on the brief), for defendant-appellant.

Harold G. Christensen, of Worsley, Snow & Christensen, Salt Lake City, Utah, for plaintiffs-appellees.

Harvey L. Pitt, Gen. Counsel, Paul Gonson, Assoc. Gen. Counsel, David J. Romanski, Asst. Gen. Counsel, Vernon I. Zvoleff, Atty., Washington, D. C., on the brief, for Amicus Curiae, Securities and Exchange Commission.

Before HILL, SETH, HOLLOWAY, McWILLIAMS, BARRETT and DOYLE, Circuit Judges.

DOYLE, Circuit Judge.

Plaintiffs-Appellees prevailed in an action for rescission of a sale of stock. Appellant Kline D. Strong was found to have made the sale by using false representations and fraudulent devices. The suit was brought pursuant to Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Recovery was also obtained on a parallel claim in common law fraud.

The Holdsworths, husband and wife, sold their shares...

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