KAY v. SCIENTEX CORP.

Nos. 82-6035, 82-6047.

719 F.2d 1009 (1983)

Harry KAY, An Individual, Appellant/Cross-Appellee/Defendant, v. SCIENTEX CORPORATION, a Nevada corporation, Appellee/Cross-Appellant/Plaintiff.

United States Court of Appeals, Ninth Circuit.

Decided November 1, 1983.


Attorney(s) appearing for the Case

Dale L. Gronemeier, Abouaf, Epstein, Myers & Gronemeier, North Sherman Oaks, Cal., for appellee/cross-appellant/plaintiff.

Charles T. Rose, Los Angeles, Cal., for appellant/cross-appellee/defendant.

Before SKOPIL and FARRIS, Circuit Judges, and CROCKER, District Judge.


OPINION

SKOPIL, Circuit Judge:

INTRODUCTION

Harry Kay ("Kay") acquired majority ownership of ScienTex Corporation ("ScienTex") through stock acquisitions in 1975 and thereafter became a corporate officer and director. He was an insider for purposes of section 16(b) of the Securities Exchange Act of 1934, 15 U.S.C. § 78p.1

Kay acquired and sold additional stock during a six month period in 1979 and 1980...

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