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MARX & CO., INC. v. DINERS' CLUB, INC.

Nos. 159, 177, Dockets 76-7050, 76-7069.

550 F.2d 505 (1977)

MARX & CO., INC., et al., Plaintiffs-Cross-Appellants, v. The DINERS' CLUB, INC., et al., Defendants-Cross-Appellees. The DINERS' CLUB, INC., and Diners/Fugazy Travel, Inc., Defendants-Appellants, v. William D. FUGAZY et al., Plaintiffs-Appellees.

United States Court of Appeals, Second Circuit.

Decided February 25, 1977.

Attorney(s) appearing for the Case

Joseph J. Santora, New York City (Hardee Barovick Konecky & Braun, New York City, of counsel), for defendants-appellants and cross-appellees; Robert B. Kay, Robert B. McKay, Stephen Ross and Salvatore A. Ranieri, New York City, on the brief.

James E. Tolan, New York City (Bruce E. Pindyck, Michael E. Twomey, Olwine, Connelly, Chase, O'Donnel & Weyher, New York City, and Barry I. Fredericks, Harris, Fredericks & Korobkin, New York City, of counsel), for plaintiffs-appellees and cross-appellants.

Before HAYS, ANDERSON and GURFEIN, Circuit Judges.

GURFEIN, Circuit Judge:

This appeal by the Diners' Club, Inc. and Diners/Fugazy Travel, Inc. (collectively "Diners") arises out of a series of transactions whereby the Fugazys sold the assets of their company, Fugazy Travel Bureau, Inc.1 ("Fugazy Travel") to Diners Club in return for unregistered stock in the latter company. The Fugazys, plaintiffs below, allege that the defendants fraudulently induced the sale, in violation of §...

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