Diskin v. Lomasney & Co.

452 F.2d 871 (1971)

From our private database of 45,900+ case briefs, written and edited by humans—never with AI.

Diskin v. Lomasney & Co.

United States Court of Appeals for the Second Circuit
452 F.2d 871 (1971)

Facts

Lomasney & Co. and its general partner (Lomasney) (defendants) sought to sell shares of Ski Park City West, S.I. (Ski Park) and Continental Travel, Ltd. (Continental). Ski Park’s shares were registered with the Securities and Exchange Commission (SEC). Continental filed a preliminary registration statement with the SEC in August 1968, but the registration statement did not become effective until February 11, 1969. On September 17, 1968, Lomasney sent a final prospectus for Ski Park to Diskin (plaintiff), with a note stating that if Diskin bought 1,000 Ski Park shares, Lomasney would sell him 5,000 shares of Continental at the offering price when Continental’s registration statement became effective. Lomasney did not provide Diskin with a Continental prospectus at that time. Diskin purchased the 1,000 Ski Park shares. Soon after the Continental registration statement became effective, Lomasney sent Diskin a confirmation for the sale of 5,000 Continental shares at the offering price. Lomasney sent Continental’s final prospectus and registration statement to Diskin at some point before February 28, the date on which Diskin paid for and received the Continental shares. In January 1970, Diskin brought suit pursuant to § 12(a)(1) of the Securities Act of 1933, seeking rescission of his Continental share purchase as having been made in violation of § 5(b)(1) of the act because Lomasney offered to sell the Continental shares before its registration became effective. Lomasney responded that Diskin received Continental’s final prospectus before paying for the shares, which cured any violation. The district court dismissed Diskin’s complaint. Diskin appealed.

Rule of Law

Issue

Holding and Reasoning (Friendly, C.J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 742,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials
  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

    Learn about our approachRead more about Quimbee

Here's why 742,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 45,900 briefs, keyed to 984 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.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 742,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 45,900 briefs - keyed to 984 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership