Flournoy v. Peyson

MEMORANDUM OPINION AND ORDER

SHADUR, District Judge.

Ardelbert and Carline Flournoy (collectively “Flournoys”) have sued Walter Pey-son (“Peyson”) and William Joseph (“Joseph”), asserting:

1. a violation of Securities Exchange Act of 1934 (“1934 Act”) § 10(b), 15 U.S. C. § 78j(b), and SEC Rule 10b-5 (collectively “Section 10(b)”) arising out of Flournoys’ purchase from Peyson of securities in two corporations of which he was President;

2. a violation of Securities Act of 1933 (“1933 Act”) § 17(a), 15 U.S.C. § 77q(a) (“Section 17(a)”);

3. a violation of 1933 Act § 12(2), 15 U.S.C. § 77(l)(2)…