Income Foundation Fund, Inc. v. C-F-M Company and Loblaw, Inc.

EDWARDS, Circuit Judge.

This is an action based on federal diversity jurisdiction involving three corporations, each of which is incorporated in and has a principal place of business in a different state.

Plaintiff-appellant — a mutual fund— purchased and now owns debentures of defendant-appellee C-F-M Company of $160,000 face value. Plaintiff-appellant made its purchase of these bonds at discount prices between October 1961 and August 1962 as a result of “inside” advice from two of C-F-M’s directors that the debentures were going to be' called for redemption.

These debentures, by their terms…