MATHEWS v. KIDDER, PEABODY & CO., INC.

No. 00-2566.

260 F.3d 239 (2001)

John W. MATHEWS; Carole Ann Nuckton; Patricia J. Lester; Jordan Brodsky; Thomas C. Chestney; Deborah W. Troemner; William J. Waterman, Jr.; Vernon L. Schatz; Susanne Diane Anderson; Larry C. Anderson; George P. Arnold; Ann M. Arnold, Appellants, v. KIDDER, PEABODY & CO., INC., a Delaware corporation; KP Realty Advisers, Inc., a Delaware corporation; HSM, Inc., a Texas corporation; Henry S. Miller CO; Henry S. Miller Management Corporation; Henry S. Miller Appraisal Corporation; HSM Real Estate Securities Corporation; Miller Real Estate Services Corporation, a Texas corporation.

United States Court of Appeals, Third Circuit.

Filed July 31, 2001.


Attorney(s) appearing for the Case

Anthony P. Picadio, Esq. (Argued) Tybe A. Brett, Esq. Picadio, McCall, Kane & Norton, 600 Grant Street 4710 USX Tower Pittsburgh, PA, 15219, Attorney for Appellants.

David L. McClenahan, Esq. (Argued) Kenneth M. Argentieri, Esq. Michael J. Lynch, Esq. Paul E. Del Vecchio, Esq. Kirkpatrick & Lockhart, 535 Smithfield Street Henry W. Oliver Building Pittsburgh, PA 15222, Attorneys for Appellees Kidder, Peabody & Co., Inc and KP Realty Advisers, Inc.

William M. Wycoff, Esq. Thorp, Reed & Armstrong 301 Grant Street One Oxford Centre Pittsburgh, PA 15219, Attorneys for Appellees HSM, Inc., Henry S. Miller Co, Henry S. Miller Management Corporation, Henry S. Miller Appraisal Corporation, HSM Real Estate Securities Corporation and Miller Real Estate Services Corporation.

BEFORE: NYGAARD and WEIS, Circuit Judges, and REAVLEY, Circuit Judge.


OPINION OF THE COURT

NYGAARD, Circuit Judge.

The Appellants in this case are a number of self-professed conservative, first-time investors who purchased securities from Kidder Peabody & Co., Inc. and the Henry S. Miller Organization. They claim that Kidder and Miller fraudulently misrepresented the securities as low-risk vehicles similar to municipal bonds. Ultimately, the securities failed and the Appellants brought civil RICO claims. After extensive...

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