American Distilling Co. v. Brown

This is an action brought in the Supreme Court of the State by the plaintiff corporation to recover from the defendant, one of its officers and directors, profits alleged to have been realized by him from purchases and sales of plaintiff’s common stock within periods less than six months. Plaintiff’s right to recover is predicated upon section 16, subdivision (b), of the Act of Congress of June 6,1934 (48 U. S. Stat. 896; II. S. Code, tit. 15, § 78p, subd. [b]), known as “ Securities Exchange Act of 1934.” This section creates the right of the issuer of securities to recover such profits from…