Plaut v. Spendthrift Farm, Inc.

BATCHELDER, Circuit Judge.

I

Appellants, the plaintiffs before the District Court, representing a large number of sometime investors, originally sued defendants on November 25, 1987, alleging violations of the securities laws, namely fraud and deceit in the sale of stock under Section 10(b) of the Securities Exchange Act of 1934 (“1934 Act”)1 and Securities and Exchange Commission Rule 10b-5.2 Defendants owned “one of the Commonwealth’s premier thoroughbred horse farms” (the District Court’s characterization, to which we owe every deference) and issued stock in the enterprise in order to raise…