Feit v. Leasco Data Processing Equipment Corporation

MEMORANDUM AND ORDER

WEINSTEIN, District Judge.

This case raises the question of the degree of candor required of issuers of securities who offer their shares in exchange for those of other companies in take-over operations. Defendants’ registration statement was, we find, misleading in a material way. While disclosing masses of facts and figures, it failed to reveal one critical consideration that weighed heavily with those responsible for the issue — the substantial possibility of being able to gain control of some hundred million dollars of assets not required for operating the business…