From our private database of 14,200+ case briefs...
Foremost-McKesson, Inc. v. Provident Securities Company
United States Supreme Court
423 U.S. 232 (1976)
In October 1969, Provident Securities Company (Provident) (plaintiff) purchased debentures from Foremost-McKesson, Inc. (Foremost) (defendant) that were immediately convertible to more than 10 percent of Foremost’s outstanding stock. At the time of the purchase, Provident owned less than 10 percent of Foremost’s stock. Shortly thereafter, Provident sold the debentures to an underwriter and distributed the proceeds from the sale to its stockholders. Knowing that it may be liable under Section 16(b) of the Securities Exchange Act of 1934 (Section 16(b)), Provident brought an action for a judgment declaring that it was not liable to Foremost for its profits from the debenture sale on the grounds that it did not hold a 10 percent interest in Foremost before the debenture purchase. The district court granted Provident’s motion for summary judgment and the United States Court of Appeals for the Ninth Circuit affirmed. The United States Supreme Court granted certiorari.
Rule of Law
Holding and Reasoning (Powell, J.)
What to do next…
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 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
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. Read more about Quimbee.
Here's why 241,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 14,200 briefs, keyed to 189 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.