Fed. Sec. L. Rep. P 96,220 Mathers Fund, Inc. v. The Colwell Company

MARKEY, Chief Judge.

Appeal by plaintiff, Mathers Fund, Inc. (Fund) from an August 2, 1976 district court order dismissing Fund’s complaint for failure to state a claim upon which relief can be granted. The complaint sought rescission of a stock sale on the ground that the purchaser was an “affiliated person.” We affirm.

Background

On November 24,1974, The Colwell Company (Colwell), a publicly held corporation engaged in the mortgage finance business, agreed to purchase 158,200 shares of its common stock from Fund, an open-end investment company registered under the Investment Company Act of…