Escott v. BarChris Construction Corp.

United States District Court, S.D., New York283 F. Supp. 643 (1968)

Facts

BarChris Construction Corporation (defendant) engaged in several transactions to construct bowling alleys during the early 1960s. In order to obtain financing for these construction projects, BarChris issued stock and sold debentures to investors. In 1962, after several bad investments, BarChris filed for bankruptcy. Investors who had purchased stock and debentures (Escott) (plaintiff) from BarChris then brought suit against BarChris’ board of directors, its underwriter, and its auditor, alleging that key pieces of financial information were purposely withheld from BarChris’ registration statements.

To access the full summary, please login or sign up.

Casebooks

Securities Regulation

Key Terms