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HUTTO v. TEXAS INCOME PROPERTIES CORP.

Civ. A. No. 72-H-853.

416 F.Supp. 478 (1976)

Emmett HUTTO and Perry Simmons, Plaintiffs, v. TEXAS INCOME PROPERTIES CORPORATION et al., Defendants. Zelman KUEHN et al., Third-Party Plaintiffs, v. M. Cecil BOBBITT et al., Third-Party Defendants. TEXAS INCOME PROPERTIES CORPORATION, Counter-Plaintiff, v. Emmett HUTTO and Perry Simmons, Counter-Defendants.

United States District Court, S. D. Texas, Houston Division.

June 16, 1976.

Attorney(s) appearing for the Case

A. D. Dyess, Jr., Houston, Tex., for Emmett Hutto and Perry Simmons.

Robert I. White, Houston, Tex., for Texas Income Properties Corp., Zelman Kuehn, H. H. Kuehn, Leo Meyerson, Owen L. Meyerson, Samuel Meyerson, Robert Silverman.

Andrew J. Lannie, Baytown, Tex., for M. Cecil Bobbitt.

John S. Brunson, Houston, Tex., for Ronald D. Marshall.

Memorandum and Opinion:

SINGLETON, District Judge.

This action is brought under Section 10(b) of the Securities Exchange Act of 1934, 15 U.S.C. § 78j(b) (1970) and its implementing counterpart Rule 10b-5, 17 C.F.R. § 240.10b-5 (1975).

Plaintiffs contend that the defendants made certain material misrepresentations, in the form of misstatements and omissions, about the financial condition of Texas Income Properties Corporation (hereinafter...

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