CLARK v. MERRILL LYNCH, PIERCE, FENNER & SMITH, INC.

No. 90-2039.

924 F.2d 550 (1991)

Donald E. CLARK, Plaintiff-Appellee, v. MERRILL LYNCH, PIERCE, FENNER & SMITH, INCORPORATED, a New Jersey corporation; Wendell C. Hoover, Defendants-Appellants.

United States Court of Appeals, Fourth Circuit.

Decided January 31, 1991.

As Amended February 26, 1991.


Attorney(s) appearing for the Case

Richard H. Sinkfield, argued, Rogers & Hardin, Atlanta, Ga. (Paul W. Stivers, James W. Beverage, Rogers & Hardin, Atlanta, Ga., on the brief), for defendants-appellants.

E. Glenn Robinson, argued, Robinson & McElwee, Charleston, W.Va. (David K. Higgins, Robinson & McElwee, Charleston, W.Va., on the brief), for plaintiff-appellee.

Before MURNAGHAN and NIEMEYER, Circuit Judges, and YOUNG, Senior United States District Judge for the District of Maryland, sitting by designation.


MURNAGHAN, Circuit Judge:

Appellee Donald Clark is a successful businessman who, since 1981, had traded in securities markets through appellant Merrill Lynch, Pierce, Fenner & Smith and its employee-broker, appellant Wendell Hoover. In January of 1985, Clark decided he needed a new investment strategy to meet cash flow requirements and told Hoover that he was thinking of investing in municipal bonds. Hoover and Merrill Lynch options specialist Richard Gordon convinced...

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