CHANG v. LIN

Nos. 816, 908, Dockets 86-7944, 86-9050.

824 F.2d 219 (1987)

Ji Sheunn James CHANG and Chin-Lan Chang, Plaintiffs-Appellants, Cross-Appellees, v. Allison S. LIN and Merrill Lynch, Pierce, Fenner & Smith, Inc., Defendants-Appellees, Merrill Lynch, Pierce, Fenner & Smith, Inc., Defendant-Appellee, Cross-Appellant.

United States Court of Appeals, Second Circuit.

Decided July 30, 1987.


Attorney(s) appearing for the Case

Victor A. Rossetti, Grosse, Rossetti, Chelus & Herdzik, Buffalo, New York City, for plaintiffs-appellants, cross-appellees.

John T. Frizzell, Williams, Stevens, McCarville & Frizzell, Buffalo, New York, for defendant-appellee, cross-appellant.

Before OAKES and WINTER, Circuit Judges, and BONSAL, Senior District Judge.


WINTER, Circuit Judge:

The plaintiffs commenced this action in September 1984 against the brokerage firm of Merrill Lynch, Pierce, Fenner & Smith, Inc. and Allison Lin, a former employee of Merrill Lynch. The plaintiffs' principal allegation is that Lin mismanaged their securities account by engaging in "churning," the excessive trading in securities for the purpose of generating commissions. They further contend that Merrill Lynch failed properly to supervise...

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