P. STOLZ FAMILY PARTNERSHIP L.P. v. DAUM

Docket No. 02-7680.

355 F.3d 92 (2004)

P. STOLZ FAMILY PARTNERSHIP L.P., on behalf of itself and others similarly situated, Plaintiff-Counter-Defendant-Appellant, v. Steven B. DAUM, Paula B. Daum, Philip Spies, and Smart World Technologies, LLC, Defendant-Counter-Claimant-Appellee.

United States Court of Appeals, Second Circuit.

Decided: January 12, 2004.


Attorney(s) appearing for the Case

Paul D. Wexler, Bragar Wexler Eagel & Morgenstern, LLP, New York, NY, for Plaintiff-Counter-Defendant-Appellant.

Barry S. Pollack, Donnelly Controy & Gelhaar, LLP, Boston, MA, for Defendant-Appellee.

Giovanni Prezioso, General Counsel, Jacob H. Stillman, Solicitor, Allan A. Capute, Special Counsel to the Solicitor, for Amicus Curiae S.E.C., Washington, D.C.

Before: CALABRESI, SACK, and CUDAHY, Circuit Judges.


Judge CALABRESI concurs in a separate opinion.

CUDAHY, Circuit Judge.

Smart World Technologies (Smart World) was one of many technology companies that did not survive the bursting of the technology bubble during 2000. Its business was free Internet access. At some point during its existence, Smart World began offering and selling "membership interests" in the company through a written prospectus. The P. Stolz Family Partnership (Stolz) purchased 31,250 of...

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