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L & B HOSP. VENTURES v. HEALTHCARE INTERN.

No. 89-2236.

894 F.2d 150 (1990)

L & B HOSPITAL VENTURES, INC., Leo J. Borrell, Bobby R. Lowrance, Psychiatric Associates of Houston, P.A., and Douglas B. Hansen, Plaintiffs-Appellants, v. HEALTHCARE INTERNATIONAL, INC., West Oaks, Inc., Healthcare-Brown Management Co., the Brown Schools, Inc., James L. Fariss, Jr., David L. Whelan and Elliott H. Weir, Jr., Defendants-Appellees.

United States Court of Appeals, Fifth Circuit.

February 12, 1990.

Attorney(s) appearing for the Case

Philip P. Sudan, Jr., Jeffery T. Nobles, Ryan & Shoss, Houston, Tex., Paul V. Castellitto, V. Thomas Lankford, Sharp, Green & Lankford, Washington, D.C., for plaintiffs-appellants.

Robert N. Brailas, Robin C. Gibbs, Gibbs & Ratliff, Houston, Tex., for defendants-appellees.

Before DAVIS and SMITH, Circuit Judges, and LITTLE, District Judge.

LITTLE, District Judge:

Believing they were bamboozled by the vendee-defendants, vendor-plaintiffs filed suit asserting, among other causes of action, relief under the Securities Exchange Act of 1934. 15 U.S.C. § 78j. The properties which the plaintiffs owned and sold were limited partnership interests in West Oaks, The Psychiatric Institute of Houston, Ltd. The purchaser was the general partner.

The defendants...

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