Value Line Fund, Inc. v. Marcus

HERLANDS, District Judge.

Plaintiffs seek rescission, restitution and damages under common law and under the Securities Act of 1933 [15 U.S. C.A. section 77a et seq.], with respect to a $3,247,000 purchase by plaintiffs of 191,000 shares of the common stock of United States Hoffman Machinery Corporation (called “Hoffman” herein) from the defendant Marcus, through the defendant Van Alstyne, Noel & Co. The sale was negotiated in behalf of the plaintiffs by Arnold Bernhard, president of plaintiffs, and Arnold Bernhard & Co., Inc., plaintiffs’ investment manager and adviser.

Plaintiffs allege inter…