VAN DE WALLE v. SALOMON BROTHERS INC.

C.A. No. 9894.

733 A.2d 312 (1998)

Charles R. VAN DE WALLE, Plaintiff, v. SALOMON BROTHERS INC., Lehman Brothers Inc., formerly known as Shearson Lehman Hutton, Inc., Defendants.

Court of Chancery of Delaware, New Castle County.

Decided: November 25, 1998.


Attorney(s) appearing for the Case

Pamela S. Tikellis of Chimicles, Jacobsen & Tikellis, Wilmington, Delaware, of counsel, James R. Malone, Jr. and Pamela M. Nicolaysen, Haverford, Pennsylvania, for Plaintiff.

Robert K. Payson of Potter Anderson & Corroon, Wilmington, Delaware, of counsel, Lyndon M. Tretter of Davis Weber & Edwards, New York, New York, for Defendants.


OPINION

STEELE, Vice Chancellor.

Plaintiff Charles R. Van De Walle ("Van de Walle") invokes § 11 of the Securities Act of 1933 (the "Act"),1 to support a claim that the Prospectus of L.F. Rothschild, Unterberg, Towbin Holdings, Inc. ("L.F. Rothschild") improperly failed to describe certain risky business ventures contemplated by management at the time of L.F. Rothschild's initial public offering (IPO) of common stock. Van...

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