MOSS v. MORGAN STANLEY INC.

No. 1281, Docket 83-7120.

719 F.2d 5 (1983)

Michael E. MOSS, Plaintiff-Appellant, v. MORGAN STANLEY INC., E. Jacques Courtois, Jr., Adrian Antoniu, and James M. Newman, Defendants, Morgan Stanley Inc. and James M. Newman, Defendants-Appellees.

United States Court of Appeals, Second Circuit.

Decided September 9, 1983.


Attorney(s) appearing for the Case

Richard J. Kilsheimer, New York City (Robert N. Kaplan, Kaplan, Kilsheimer & Foley, New York City, Herbert E. Milstein, Steven J. Toll, Kohn, Milstein, Cohen & Hausfeld, Washington, D.C., of counsel), for plaintiff-appellant.

Arthur F. Mathews, Washington, D.C. (Andrew B. Weissman, Thomas W. White, Wilmer, Cutler & Pickering, Washington, D.C., of counsel), for defendant-appellee James M. Newman.

Henry L. King, New York City (Arthur F. Golden, James L. Kerr, Davis Polk & Wardwell, New York City, of counsel), for defendant-appellee Morgan Stanley Inc.

Daniel L. Goelzer, Gen. Counsel, Jacob H. Stillman, Associate Gen. Counsel, Rosalind C. Cohen, Asst. Gen. Counsel, Paul Gonson, Sol., Robert Mills, Elliot M. Pinta, S.E.C., Washington, D.C., amicus curiae.

Before MANSFIELD, MESKILL and KEARSE, Circuit Judges.


MESKILL, Circuit Judge:

This appeal spotlights two issues of significance for the litigation of federal securities fraud claims: (1) whether a shareholder who unwittingly sold stock of a "target" company on the open market prior to public announcement of a tender offer has a cause of action for damages under section 10(b) of the Securities Exchange Act of 1934, 15 U.S.C. § 78j(b) (1976) (the 1934 Act), and rule 10b-5,...

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