Michtom v. United States

This case is before the court on cross motions for summary judgment. The parties have submitted a partial stipulation of facts. The question presented is the proper characterization to be given two losses incurred by the plaintiffs in 1970 and 1974 as a result of entering into a subordination agreement with Hayden Stone Incorporated (hereinafter referred to as Hayden Stone) and subsequently selling preferred stock of H. S. Equities, Inc., Hayden Stone’s successor. Having carefully considered the briefs and oral arguments presented, we find that the 1970 loss is *15properly characterized as an…