Fed. Sec. L. Rep. P 97,590 Ralph Falls, Jr. v. William Fickling, William Fickling, Jr. And F. Kennedy Hall

GOLDBERG, Senior Circuit Judge:

We are today asked to decide whether a stockholder whose stock is purchased at a sheriff’s sale is entitled to the protection of Rule 10b-5. For the purpose of ruling on this appeal from a dismissal for lack of standing and for failure to state a claim upon which relief can be granted, we accept the facts alleged by plaintiff to be true.

I

Plaintiff-Appellant, Ralph Falls, Jr., owned stock in Charter Medical Corporation, a Delaware corporation engaged in the operation of hospitals. 1 Defendants-Appellees are William Fickling, a stockholder and director of Charter…