Kardon v. National Gypsum Co.

KIRKPATRICK, District Judge.

Leon A. and William Slavin, defendants, having purchased the plaintiffs’ stock in a Michigan corporation and its affiliate, sold the bulk of the corporate assets to the defendant, National Gypsum Company. The plaintiffs brought this action, alleging that the Slavins had violated Sec. 10(b) of the Securities and Exchange Act of 1934, 15 U.S.C.A. § 78j(b), and the Commission’s Rule X-10B-5 in connection with the purchase of their stock and asking, among other things, that the Slavins account for profits realized by them through the sale of the corporate assets.

The…