Van Aalten v. Hurley

BICKS, District Judge.

Sub judice are cross-motions for summary judgment. Plaintiff, a stockholder of Curtiss-Wright Corporation, instituted this suit pursuant to Section 16(b) of the Securities Exchange Act of 1934, 15 U.S.C.A. § 78p(b), 1 to recover “short-swing” profits allegedly realized by the individual defendants. The important legal issue presented is whether, assuming arguendo the invalidity of Securities and Exchange Commission Rule X-16B-3, 17 C.F.R. 240.16b-3, 2 the exculpatory provision contained in § 23(a) of the Act, 15 U.S.C.A. § 78w, immunizes the defendants from the asserted…