Mendell v. Gollust

OPINION AND ORDER

MUKASEY, District Judge.

Plaintiff Ira L. Mendell sues on behalf of Viacom Inc. and alternatively Viacom International, Inc., to recover profits defendants allegedly realized by trading Viacom International stock in violation of § 16(b) of the Securities Exchange Act of 1934, 15 U.S.C. § 78p(b). Section 16(b) prohibits an owner of more than 10% of any class of an issuer’s securities from purchasing and selling or selling and purchasing the issuer’s securities within a six-month period. The central issue in dispute is whether defendants, who individually held less than 10% of…