Schein v. Lamar

This action arises from the sale of certain capital notes of the American Bank & Trust Company (the Bank). Sadie Schein alleges she is the purchaser and holder of one of the notes. She seeks to bring a class action against the directors of the Bank (the Directors), for common law fraud, violation of the South Carolina Securities Act, negligence, and mismanagement, all of which she alleges caused her and other capital note holders similarly situated to suffer the loss of the value of their notes when the Bank became insolvent.

*254The case comes to us in a procedurally complicated posture. We…