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HACKBART v. HOLMES

No. 80-1368.

675 F.2d 1114 (1982)

Dale HACKBART and Holmes Tire of Denver, Inc., a Colorado corporation, by Dale Hackbart as Shareholder, Plaintiffs-Appellees, v. James F. HOLMES, Defendant-Appellant.

United States Court of Appeals, Tenth Circuit.

April 19, 1982.

Attorney(s) appearing for the Case

William D. Meyer of Hutchinson, Black, Hill, Buchanan & Cook, Boulder, Colo., for defendant-appellant.

Bruce O. Downsbrough of Williams, Trine, Greenstein & Griffith, Boulder, Colo., for plaintiffs-appellees.

Before BARRETT and LOGAN, Circuit Judges, and CHILSON, District Judge.

LOGAN, Circuit Judge.

In this Rule 10b-5 securities fraud action, defendant James F. Holmes appeals the trial court's decision that in selling to plaintiff Dale Hackbart preferred stock in their two-owner tire sales company, Holmes acted recklessly by failing to ensure that Hackbart understood the preferred stock would not share in the growth of the corporation unless and until Holmes permitted it to be converted to common...

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