Hayes v. Gross

OPINION OF THE COURT

STAPLETON, Circuit Judge:

I

In this appeal, we consider whether plaintiff-appellant F.W. Hayes (“plaintiff”) has stated a claim under the federal securities laws against officers and directors of Bell Savings Bank (“Bell”), a state-chartered savings association in the receivership of the Resolution Trust Company (“RTC”). Plaintiff alleges in his amended complaint that defendants knowingly or recklessly misrepresented the financial and operating condition of Bell, that this resulted in the artificial inflation of the market price for Bell stock, and that plaintiff and others…