GATTO v. MERIDIAN MEDICAL ASSOCIATES, INC.

No. 89-5206.

882 F.2d 840 (1989)

Michael GATTO, Richard Gatto, Stanford J. Heller, Laurence Kramer, Ralph Nappi, Nat Sorkin, Sam Zuckerman, Sandy Zuckerman, Hyman Silkes, Leff & Wolf Co., a New York unincorporated association, and O. George Philipp, Appellants, v. MERIDIAN MEDICAL ASSOCIATES, INC., 1680 Meridian Corp., Mast Property Investors, Inc. Consolidated Mast Corporation, Mast Property Investors, Inc. and Affiliated Companies Employee Profit Sharing Trust, NWN Capital Ltd., Marks, Shron & Company, Norman W. Nick, Marvin E. Greenfield, Gerald Silverman, John Doe and Richard Roe Inc.

United States Court of Appeals, Third Circuit.

Decided August 24, 1989.


Attorney(s) appearing for the Case

Robert H. Jaffe, Jaffe & Schlesinger, P.A., Springfield, N.J., for appellants.

Lawrence N. Lavigne, Hanlon, Herzfeld & Rubin, Edison, N.J., for appellees (Mast Property Investors, Inc., Consol. Mast Corp., Mast Corp., Mast Property Investors, Inc., Affiliated Companies Employee Profit Sharing Trust, NWN Capital Ltd., Norman W. Nick & Marvin E. Greenfield & Meridian Medical Associates, Inc.).

Padraic B. Deighan, Marlton, N.J., and Clifford B. Hark, Miami, Fla., co-counsel for appellees Gerald Silverman and 1680 Meridian Corp.

David B. Hamm, Herbert Rubin, Herzfeld & Rubin, P.C., New York City, for appellees (Mast Property Investors, Inc., Consolidated Mast Corp., Mast Corp., Mast Property Investors, Inc., Affiliated Companies Employee Profit Sharing Trust, NWN Capital, Ltd., Norman W. Nick and Marvin E. Greenfield).

James M. Kaplan, Wilson, Elser, Moskowitz, Edelman & Dicker, New York City, for appellees, Marks Shron & Co.

Before SLOVITER and GREENBERG, Circuit Judges, and VAN ANTWERPEN, District Judge.


Submitted Under Third Circuit Rule 12(6) August 10, 1989.

OPINION OF THE COURT

SLOVITER, Circuit Judge.

I.

Appellants are plaintiffs in a suit alleging violations of federal securities laws and state common law in connection with their purchase on or about December 30, 1981 of limited partnership interests in a medical building, a transaction structured to shelter income from federal taxation. Appellees were various parties connected with...

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