HUDSON v. CAPITAL MANAGEMENT INTERN., INC.

No. C-81-1737-MHP.

565 F.Supp. 615 (1983)

Robert C. and Shirley A. HUDSON, and David Blechman, on behalf of themselves and all others similarly situated, Plaintiffs, v. CAPITAL MANAGEMENT INTERNATIONAL, INC., et al., Defendants.

United States District Court, N.D. California.

As Amended June 7, 1983.


Attorney(s) appearing for the Case

David B. Gold, Paul F. Bennett, George Donaldson, and Godfrey L. Munter, Jr., Martin & Munter, San Francisco, Cal., for Hudsons.

Max W. Berger, Gene Kleinhendler, Kreindler & Kreindler, New York City, for Bernstein, Seawell and Kove.

M. Laurence Popofsky, Scott Fink, Lawrence W. Keeshan, Heller, Ehrman, White & McAuliffe, San Francisco, Cal., for Price Waterhouse & Co.

David Henshaw, James Gansinger, Jones, Bell, Simpson, Gansinger & Abbott, Los Angeles, Cal., for First Affiliated Sees., Birr Wilson & Co. and Independent Fin. Planners.

Douglas B. Hughmaneck, Paul Dawes, Thelen, Marrin, Johnson & Bridges, San Francisco, Cal., for Bronson, Bronson & McKinnon, Thomas Byrne Swartz and Thomas Swartz.

William F. Campbell, Benjamin H. Parkinson, Jr., Ackerman, Johnston, Campbell & Parkinson, San Francisco, Cal., for Robert Adler.

Jackson L. Morris, in pro. per.

Eldon Olson, Price Waterhouse & Co., New York City, Jerry K. Cimmet, San Francisco, Cal., for Wallace Vickery.

Dennis K. Bromley, Pillsbury, Madison & Sutro, San Francisco, Cal., Charles W. Boand, Wilson & McIlvaine, Chicago, Ill., for Arthur Andersen & Co.

Theodore W. Rosenak, Archer, Rosenak & Hanson, San Francisco, Cal., for Simon Adler, Alfred Avery, Dene Orndorf Collins, Shirley Denes, Joseph Bradford Giordano, John Schweiger, Emery Sims, Dan W. Ward, John Adams, Geo. Hochswender, George Wood, Mary Fritze, C. Wm. Ford, M. Fritze, John King, Donald J. Sedam, Jonathan Tobey, Wallace Vikery and Magdy Shebbein.

Ernest J. Getto, Joan T. Hood, Latham & Watkins, Los Angeles, Cal., for Advest, Inc. and Irell & Manella.

Barry L. Bunshoft, Patrick A. Cathcart, Hancock, Rothert & Bunshoft, San Francisco, Cal., for Irell & Manella.

Dale Fredericks, Tod L. Gamlen, Sedgwick, Detert, Moran & Arnold, San Francisco, Cal., for May, Zima & Co.

Steven A. Lewis, Howard M. Garfield, Long & Levit, San Francisco, Cal., for Cherry, Bekaert & Holland.

Nelson C. Barry, Nannette de Lara, G. Kelly Reid, Jr., Bishop, Barry, Howe & Reid, San Francisco, Cal., for Lowenstein, Brause & Hirsch.

Alvin M. Stein, Parker, Chapin, Flattau & Klimpl, New York City, John S. Martel, Douglas Young, Farella, Braun & Martel, San Francisco, Cal., for Alexander Grant & Co.

Sherwin J. Markman, John R. Gerstein, Hogan & Hartson, Washington, D.C., for Robert M. Adler.

George A. Yuhas, Ronald G. Aronovsky, Orrick, Herrington & Sutcliffe, San Francisco, Cal., for Xavier J. Wohner.

Law Offices of Marvyn Gordon, Los Angeles, Cal., for Meyer C. Heller.

Peter B. Atwood, Atwood & Richmond, Boca Raton, Fla., for First Fla. Securities, Inc.

Donald J. Yellon, San Francisco, Cal., for Clariden Bank; Donald Cronson, Geneva, Switzerland, of counsel.

James M. Gansinger, Alan B. Pick, Gansinger & Pick, Los Angeles, Cal., for Independent Fin. Plng. Corp.

Theodore A. Russell, Pettit & Martin, San Francisco, Cal., for Robert Long and Jonathan S. Tobey.

Peter J. Busch, Howard, Rice, Nemerovski, Canady, Robertson & Falk, San Francisco, Cal., and Michael Nussbaum, Kate A. Martin, Nussbaum, Owen & Webster, Washington, D.C., for Stiller, Adler & Schwartz and Stiller, Schwartz & Kaswell.


OPINION

PATEL, District Judge.

INTRODUCTION

This action is brought pursuant to the Securities and Exchange Acts of 1933 and 1934, 15 U.S. §§ 77a-77bbbb, 15 U.S.C. §§ 78a-78kk, and state law. Plaintiffs Blechman and Robert and Shirley Hudson invested in limited partnerships entitled Delta Greenhouse, Ltd. and California Flowerland '79, respectively. Plaintiffs allege that these limited partnerships were sold as part of a complex...

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