Heublein, Inc. v. General Cinema Corp.

OPINION AND ORDER

CONNER, District Judge:

This is an action under § 16(b) of the Securities Exchange Act of 1934 (the “Act”), 15 U.S.C. § 78p(b), 1 to recover short-swing profits made by defendant General Cinema Corporation (“General Cinema”). Plaintiff Heublein, Inc. (“Heublein”) alleges that defendant earned approximately $74 million in profits from its trading in the stock of Heublein, Inc. (“Old Heublein”), of which $30 million is attributable to transactions in violation of § 16(b). The case presents the question whether a § 16(b) “sale” occurs when a corporation responds to the perceived…