Truncale v. Blumberg

RIFKIND, District Judge.

The defendant’s motion for summary judgment and plaintiff’s cross-motion for the same relief raise substantially but one question: Where the donee of a director of a corporation sells the gift securities within six months from the time they were acquired by the donor, is the donor-director liable for the profits realized under Sec. 16(b), Securities Exchange Act of 1934, 15 U.S.C.A. § 78 p(b)? All other aspects of the motion have been abandoned by the plaintiff. It is admitted that if such liability does attach the profits realized amount to $800.

The principal issues…