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duPONT v. BRADY

No. 1043, Docket 87-7198.

828 F.2d 75 (1987)

Eugene duPONT III, Plaintiff-Appellant, v. Edward J. BRADY and Brady & Tarpey, P.C., Defendants-Appellees.

United States Court of Appeals, Second Circuit.

Decided September 8, 1987.

Attorney(s) appearing for the Case

Michael E. Schoeman, New York City (Thomas J. Dolan, Schoeman, Marsh, Updike & Welt, New York City, of counsel), for plaintiff-appellant.

Anthony P. Colavita, L'Abbate & Balkan, Garden City, N.Y., for defendants-appellees.

Before FEINBERG, Chief Judge, and KEARSE and WINTER, Circuit Judges.

WINTER, Circuit Judge:

The principal issue before us, one of first impression, is which party bears the burden of persuasion on the issue of a plaintiff's reliance or nonreliance on a defendant's material omissions under Section 10(b) of the Securities and Exchange Act of 1934, 15 U.S.C. § 78j(b) (1982), and Rule 10b-5 promulgated thereunder, 17 C.F.R. § 240.10b-5 (1986). We conclude that, once the plaintiff establishes...

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