Joseph v. Farnsworth Radio & Television Corp.

(dissenting).1

1. The pertinent sections of the complaint may be summarized thus: The defendants, directors of the Farnsworth Company, published false statements of material facts concerning the financial condition of the company. This the defendants did to induce purchases of shares of stock in that company owned by them. Soon after defendants had sold all their shares of stock, the plaintiffs, misled by the false statements, purchased some Farnsworth shares on the stock exchange where Farnsworth stock was listed. When, later, the true facts about the company’s financial condition were…