GOLDEN v. GARAFALO

No. 694, Docket 81-7693.

678 F.2d 1139 (1982)

Arthur GOLDEN and Gladys Golden, Plaintiffs-Appellants, v. Anthony GARAFALO, Defendant-Appellee.

United States Court of Appeals, Second Circuit.

Decided May 5, 1982.


Attorney(s) appearing for the Case

Edward Labaton, New York City (John H. Riley, Richard K. Rosenblum, Kass, Goodkind, Wechsler & Labaton, New York City, of counsel), for plaintiffs-appellants Arthur Golden and Gladys Golden.

William B. Aronstein, New York City (Milton Waxenfeld, Warshaw Burstein Cohen Schlesinger & Kuh, New York City), for defendant-appellee Anthony Garafalo.

Before LUMBARD, NEWMAN and WINTER, Circuit Judges.


RALPH K. WINTER, Jr., Circuit Judge:

This appeal raises another of the recurrent and troubling questions1 as to the legal status of certain instruments under the Securities Act of 1933 (the "'33 Act") and the Securities Exchange Act of 1934 (the "'34 Act") (collectively, the "Acts").

Plaintiffs purchased 100% of the outstanding stock of a corporation engaged in the ticket brokerage business from defendant, the sole stockholder...

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