Technomedical Labs, Inc. v. Utah Securities Division

BENCH, Judge:

Plaintiffs appeal an order of defendant Department of Business Regulation (“Department”) which denied effectiveness to plaintiffs’ securities registration statements. 1 We affirm.

FACTS

Plaintiffs, Technomedical Labs, Inc. and Connections Marketing Corp. (formerly TPI, Inc.), are publicly-held corporations. In early 1984, plaintiffs each organized a new corporation and thereafter acquired all of the stock of the new corporation, making each new corporation a wholly-owned subsidiary of the parent corporation. 2 Subsequent to the formation of the subsidiaries and after plaintiffs had…