EPSTEIN v. HAAS SECURITIES CORP.

Nos. 87 Civ. 9285 (LBS), 88 Civ. 1622 (LBS), 88 Civ. 2749 (LBS), 88 Civ. 4041 (LBS), 88 Civ. 4559 (LBS), 88 Civ. 8819 (LBS) and 89 Civ. 5288 (LBS).

731 F.Supp. 1166 (1990)

Laura EPSTEIN, Plaintiff, v. HAAS SECURITIES CORP., Stanley Aslanian, Jr., L.F. Rothschild & Co., Inc., Eugene K. Laff, Robert Schoenthal, Mathew R. Deane, Francois Mayer, Robert R. Errico, Andrew Berger, Joel Miller, Henry Lorin, Henlor Capital, Ltd., Irwin Zandman, Joelle Harris a/k/a Mrs. Joelle Lorin, Enn Kunnapas, Linda Kunnapas, T.S. Industries, Wondoor, Frank Shannon, Yarrimup (a Panamanian Corporation), J.T. Moran & Co., Inc., John T. Moran, Paul R. Miano, Maureen Steffenson and John Does I-X, Defendants. Solange LANDAU, Plaintiff, v. Toni VALLEN, Haas Securities Corp., Eugene K. Laff, Stanley Aslanian, Jr., Mark Burgess, L.F. Rothschild & Co., Inc., Robert Schoenthal, Mathew R. Deane, Francois Mayer, Robert R. Errico, Andrew Berger, Joel Miller, Kuhns Brothers, Laidlaw, Inc. f/k/a Laidlaw Adams & Peck, Inc., Walter Baur, Henry Lorin, Henlor Capital, Ltd., Joelle Harris a/k/a Mrs. Joelle Lorin, Enn Kunnapas, Linda Kunnapas, Maureen Steffenson, Dr. Irwin Zandman, Capital Shares, Inc., Lawrence C. Caito, H. Clinton Pollack, Frank Shannon, Yarrimup (A Corporation), J.T. Moran & Co., Inc., John T. Moran, Paul R. Miano, Jacques M. de Stadelhofen, Legal Assistant Corporation and John Does I-IX, Defendants. R. Craig OVERTURF, Plaintiff, v. HAAS SECURITIES CORP., Eugene K. Laff, Stanley Alsanian, Jr., L.F. Rothschild & Co., Inc., Robert Schoenthal, Mathew R. Deane, Francois Mayer, Robert R. Errico, Andrew Berger, Joel Miller, Henry Lorin, Henlor Capital, Ltd., Joelle Harris a/k/a Mrs. Joelle Lorin, Enn Kunnapas, Linda Kunnapas, Toni Vallen, Maureen Steffenson, Dr. Irwin Zandman, Capital Shares, Inc., Lawrence C. Caito, H. Clinton Pollack, Frank Shannon, Yarrimup (A Corporation), J.T. Moran & Co., Inc., John T. Moran, Paul R. Miano, Jacques M. de Stadelhofen, Legal Assistant Corporation and John Does 1-10, Defendants. L.F. ROTHSCHILD & CO., INCORPORATED, Plaintiff, v. Victor M. CASTELAZO, Sr., Individually and as Ancillary Guardian of the Property of Victor M. Castelazo, III, and Laura Christina Castelazo, Defendant. Victor M. CASTELAZO, Sr., Individually and as Ancillary Guardian of the Property of Victor M. Castelazo, III and Laura Christina Castelazo, Counterclaim Plaintiff, v. L.F. ROTHSCHILD & CO., INCORPORATED, Toni Vallen, Kuhns Brothers & Laidlaw, Inc., Walter H. Baur, Leroy Twiste, Gottfried Von Hohenberg, Eugene K. Laff, Stanley Aslanian, Jr., Mark Burgess, Robert Schoenthal, Mathew P. Deane, Francois Mayer, Andrew M. Berger, Joel Miller, Henry Lorin, Joelle Lorin, Enn H. Kunnapas, Linda Kunnapas, Maureen Steffenson, Henlor Capital, Ltd., J.T. Moran & Co., Inc., John T. Moran, Paul Miano, Frank Shannon, Yarrimup (A Corporation), Jacques M. de Stadelhofen, Legal Assistant Corp., Counterclaim Defendants. John T. GROEL, Plaintiff, v. L.F. ROTHSCHILD & CO., INC.; L.F. Rothschild, Unterberg, Tobin, Inc.; Haas Securities Corporation; Stanley A. Aslanian; Eugene K. Laff; Ethel Schwartz; Robert A. Spira; Thomas W. Clegg; Henry Lorin; Frank Shannon; Enn Kunnapas; Maureen Steffenson; Joelle Harris; Matthew P. Deane; Robert Schoenthal; Francois J.P. Mayer; Andrew L. Berger; Joel E. Miller; Robert R. Errico and John Does 1 through 10, Defendants. Nancy J. HERTZFELD and Frances S. Hertzfeld, Plaintiffs, v. Eugene K. LAFF, Stanley Aslanian Jr., Marjorie A. Laff, Frank Shannon, L.F. Rothschild & Co., Inc., Haas Securities Corp., Robert Schoenthal, Matthew R. Deane, Francois Mayer, Robert R. Errico, Andrew Berger, Joel Miller, Henry Lorin, Henlor Capital, Ltd., Joelle Harris a/k/a Mrs. Joelle Lorin, Enn Kunnapas, Linda Kunnapas, Maureen Steffenson, Dr. Irwin Zandman, Capital Shares, Inc., Lawrence C. Caito, Yarrimup (a Corporation), J.T. Moran & Co., Inc., John T. Moran, Paul R. Miano and John Does I-IX, Defendants. Ron BASHAM, individually and as trustee of the Advance Petroleum, Inc. Defined Benefit Pension Plan and Trust, Plaintiff, v. L.F. ROTHSCHILD & CO., INC.; L.F. Rothschild, Unterberg, Tobin, Inc.; Haas Securities Corporation; Stanley A. Aslanian; Eugene K. Laff; Henry Lorin; Henlor Capital, Ltd.; Frank Shannon; Yarrimup (a corporation); Enn Kunnapas; Linda Kunnapas; Maureen Steffenson; Joelle Lorin; Irwin Zandman; Matthew P. Deane; Robert Schoenthal; Francois J.P. Mayer; Andrew L. Berger; Joel E. Miller; Robert R. Errico; J.T. Moran & Co., Inc.; John T. Moran; Paul R. Miano; Capital Shares, Inc.; Lawrence C. Caito; and John Does 1 through 10, Defendants.

United States District Court, S.D. New York.

February 21, 1990.


Attorney(s) appearing for the Case

Gusrae, Kaplan & Bruno (Mark J. Astarita, of counsel), New York City, for plaintiffs Solange Landau and R. Craig Overturf.

Dorsey & Whitney (James R. Kahn and Robert G. Manson, of counsel), New York City, for counterclaim plaintiff Victor M. Castelazo, Sr.

Bressler, Amery & Ross (Lawrence D. Ross, Jordan S. Weitberg and Jon W. Olson, of counsel), Morristown, N.J., for plaintiffs Ron Basham and John T. Groel.

Goodkind, Labaton & Rudoff (Edward Labaton, Richard J. Paley and Arthur M. Neiss, of counsel), New York City, for plaintiffs Nancy J. Hertzfeld and Frances S. Hertzfeld.

Cahill Gordon & Reindel (Thomas J. Kavaler, Leslie Kason, Phillip C. Essig and Richard G. Primoff, of counsel), New York City, for defendants Robert R. Errico and Andrew L. Berger.

Janvey, Berglas & Gordon (Martin S. Berglas, of counsel), New York City, for defendants L.F. Rothschild & Co., Inc., Matthew P. Deane, Joel Miller and Robert Schoenthal.

Paul K. Rooney, P.C. (Paul K. Rooney and Matthew E. Power, of counsel), New York City, for defendants Capital Shares, Inc. and Lawrence Caito.

Rosenman & Colin (Gilbert S. Edelson and Diane da Cunha, of counsel), New York City, for defendant Frank Shannon.


OPINION

SAND, District Judge.

Plaintiffs, aggrieved investors or representatives of aggrieved investors, are suing a number of individuals and companies alleged to have played some role in a scheme to manipulate the prices of certain securities. Presently before the Court are motions of various defendants: for summary judgment on claims of control person liability; to dismiss claims of both aiding and abetting and primary liability under federal securities...

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