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OCHS v. SHEARSON LEHMAN HUTTON INC.

No. 89 Civ. 3778 (CSH).

768 F.Supp. 418 (1991)

Lamar H. OCHS, David C. Cole, Irving Mann, David S. Takvorian, David B. Haltzclau, Ben Marino, Jr., Morris R. Westlund, Dr. Phillip E.B. Byrd, Jr., Mary B. McComb, Walter E. Foster, Louis G. Cian, F.W. Albers, James H. Williams, Jr., Edward R. Norford, Michael J. & Kathleen R. Reidy, Douglas C. Paul, Ollie & G.F. McNamara, Richard Schneider, Guy D. & Irene F. Strevey, Joan M. Thistlewood, Glenn Schrobilgen, Lynn, Lisa & Anne Torray, Jtwros, Betty Kisn, Eberhard C. Von Clemm, Marc H. Glickman, M.D., Surendrapal Singh Mac, Jane A. Miller, J.J. Kasper, Thomas E. Jones, Thomas H. Ware, Patricia Anne Morton, Edwin E. Musser, John V. Stevens, Benjamin C. & Perpetua B. Guerra, George & Christine Giannaris, Charles Railsback, Dr. Rogelio F. Arcunio, Esther & George G. Lee, M.D., Charles W. Scaling, III, Gerald C. Chichester, Stephen E. Chiarello & Patricia F. Chiarello and Michael M. Shapiro, Plaintiffs, v. SHEARSON LEHMAN HUTTON INC., E.F. Hutton & Company, Inc., Hutton Real Estate Services II, Inc., Continental Real Equities, CR, Butterfield Venture Corporation, Bernard W. Baker, and Gary L. Langendoen, Defendants.

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

May 23, 1991.

Attorney(s) appearing for the Case

Stephen R. Lang, Howard S. Wolfson, Brenda F. Szydlo, Breed, Abbott & Morgan, New York City, for defendant Butterfield Venture Corp.

Herbert Beigel, Bijan Amini, Lawrence R. Gelber, Beigel & Sandler, Ltd., New York City, for plaintiffs.

Gerald Kerner, Douglas Young Peters, Pamela G. Bishop, Willkie Farr & Gallagher, New York City, for defendants Shearson, Lehman Hutton Inc., E.F. Hutton & Co., Inc. and Hutton Real Estate Services II.

MEMORANDUM OPINION AND ORDER

HAIGHT, District Judge:

In this action based upon the Securities Exchange Act of 1934 and the civil RICO statute, various defendants move under Rules 9(b) and 12(b)(6), Fed.R.Civ.P., to dismiss plaintiffs' second amended complaint.

BACKGROUND

The amended complaint alleges that plaintiffs invested as limited partners in E.F. Hutton Southwest Properties II (the "Partnership" or "Southwest"), a Delaware limited...

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