Fischer v. International Telephone & Tel. Corp., 74 C 576.
Decision Date | 20 March 1975 |
Docket Number | No. 74 C 576.,74 C 576. |
Citation | 391 F. Supp. 744 |
Parties | Nathan B. FISCHER, Plaintiff, v. INTERNATIONAL TELEPHONE AND TELEGRAPH CORPORATION et al., Defendants. |
Court | U.S. District Court — Eastern District of New York |
Avrom S. Fischer, Brooklyn, N. Y., for plaintiff.
Wormser, Kiely, Alessandroni, Mahoney & McCann, New York City, for ITT.
Debevoise, Plimpton, Lyons & Gates, New York City, for Black and Friedman.
Paul, Weiss, Rifkind, Wharton & Garrison, New York City, for Lazard Freres & Co. and Rohatyn.
Defendants, Lazard Freres & Co. and Felix G. Rohatyn, have made a motion for an order pursuant to Rule 56 of the Federal Rules of Civil Procedure granting summary judgment dismissing the complaint on the ground that the claims of the plaintiff contained therein are time barred under Section 13 of the Securities Act of 1933 (15 U.S.C.A. § 77m).
Plaintiff's complaint which was filed on April 15, 1974, alleges that the defendants violated Section 11 of the Securities Act of 1933 (15 U.S.C.A. § 77k) in connection with the registration and public offering of one million shares of Cumulative Preferred Stock, $5.00 Convertible Series O of International Telephone and Telegraph Corporation ("ITT"), which plaintiff claims was sold to the public on April 27, 1971.
Plaintiff's first claim in his complaint is on behalf of himself and his second claim purports to be brought on behalf of himself and "all persons who purchased said securities that were the subject of the aforesaid registration statement from the defendants or their agents pursuant to Rule 23(b)(3) F.R. C.P. and have sustained a loss."
In his claims plaintiff alleges that he believes that the Internal Revenue Service ruling that the acquisition by ITT of Hartford Fire Insurance Company would not result in a capital gains tax being imposed upon Hartford shareholders who exchanged their Hartford stock for ITT securities "was obtained by a misleading application." Plaintiff further alleges that the aforesaid registration statement was false and misleading in that it omitted material facts, namely, that the application for the aforesaid Internal Revenue Service ruling was obtained on the basis of a misleading application and that accordingly the aforsaid ruling was subject to revocation with resulting adverse publicity to ITT and a potential liability of $35,000,000 to $40,000,000 to Hartford stockholders who exchanged their stock for ITT securities.
Plaintiff also alleges that he purchased five shares of the ITT Series O stock on February 15, 1973 for $464.04 and that he did not know of the omission of the aforesaid material facts and could not have known thereof in the exercise of reasonable diligence "since the revocation of the aforesaid ruling was not even announced until March of 1974."
For himself plaintiff claims damages in the amount of the decline in the value of his five shares from $464. to approximately $265 and for the class the total amount of "claims proved by all members" in addition to "an amount sufficient to reimburse plaintiff" for his "reasonable expenses" and for his "reasonable attorneys and accountants fees".
Defendants claim that since plaintiff's complaint was filed more than three years after the ITT Series O stock "was bona fide offered to the public", plaintiff's claims are time barred.
Defendants' statement filed pursuant to Rule 9(g) recites the pertinent facts as follows:
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...Waterman v. Alta Verde Indus., 643 F.Supp. 797, 808 (E.D.N.C.1986) (emphasis in original); accord Fischer v. International Tel. & Tel. Corp., 391 F.Supp. 744, 747 (E.D.N.Y.1975). This period is an absolute outer limitation. Bresson v. Thomson McKinnon Sec., Inc., 641 F.Supp. 338, 343 (S.D.N......
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Brick v. Dominion Mortg. & Rlty. Trust
...within one year after the discovery of the falsity of the statement or the omission." Id., at 486. In Fischer v. International Telephone & Tel. Corp., 391 F.Supp. 744 (E.D.N.Y.1975), plaintiff alleged that defendants' registration statement was false and misleading and omitted material fact......
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