Akerman v. Oryx Communications, Inc.
United States Court of Appeals for the Second Circuit
810 F.2d 336 (1987)
- Written by Rocco Sainato, JD
Facts
In 1981, Oryx Communications, Inc. (defendant) had an initial public offering (IPO) of shares of its company. The offering was priced at $4.75 on June 30, 1981. In its registration statements for the IPO, Oryx mistakenly accounted for a large transaction that took place in April in its March financial statements. This caused Oryx’s revenue to appear greater than it was in reality. Oryx informed the SEC of this mistake on October 15, 1981, at which time Oryx’s stock was priced at $4.00 per share. Oryx then disclosed the mistake to the public, at which time its stock was valued at $3.25 per share. This suit was commenced by shareholders (Akerman) (plaintiff) two weeks after the public disclosure, at which time the stock had increased to $3.50 per share. Akerman asserted that he was entitled to the difference between the value of the stock prior to disclosure of the mistake and the value after the disclosure. The district court ruled in favor of Akerman. Oryx appealed to the Second Circuit Court of Appeals.
Rule of Law
Issue
Holding and Reasoning (Meskill, J.)
What to do next…
Here's why 805,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 46,300 briefs, keyed to 988 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.
