Blau v. Lamb

DIMOCK, District Judge.

This is an action to recover short swing profits under section 16(b) of the Securities Exchange Act, 15 U.S.C. § 78p(b).

The several defendants were all holders of stock of Lamb Industries, Inc. Each of them exchanged this stock for convertible preferred stock of Air-Way Industries, Inc. Within six months thereafter each converted this preferred stock into common stock of Air-Way Industries, Inc. While it is conceded by plaintiff’s counsel that a major portion of plaintiff’s claim arises in this way plaintiff claims profits from some other more conventional transactions…