Reed v. Smith, Barney & Co.

MEMORANDUM

COOPER, District Judge.

This suit arises out of alleged misrepresentation made to plaintiff by defendant Gardner, a registered representative of Smith, Barney & Company, Inc., concerning the advisability of purchasing Maxson Electronic Co. stock. Plaintiff alleges Gardner informed him in early July 1968 that Smith, Barney had made an analysis of the business prospects of Maxson, that his firm’s research department would issue a favorable report shortly and recommend acquisition of Maxson shares, and that in reliance of this disclosure plaintiff purchased 1,500 shares. Plaintiff’s…