Smolowe v. Delendo Corporation

CLARK,- Circuit Judge.

The issue on appeal is solely one of the construction and constitutionality of § 16 (b) of the Securities Exchange Act of 1934, 15 U.S.C.A. § 78p(b), rendering directors, officers, and principal stockholders liable to their corporation for profits realized from security tradings within any six months’ period. Plaintiffs, Smolowe and Levy, stockholders of the Delendo .Corporation, brought separate actions under this statute on behalf of themselves and other stockholders for recovery by the Corporation — joined as defendant — against defendants Seskis and Kaplan, both…