MAI Basic Four, Inc. v. Prime Computer, Inc.
United States Court of Appeals for the First Circuit
871 F.2d 212 (1989)
MAI Basic Four, Inc. (defendant) attempted to take control of Prime Computer, Inc. (plaintiff) through a tender offer for Prime’s stock. MAI’s underwriter, Drexel Burnham Lambert, Inc., who also had an interest in MAI, assisted in the tender offer. Prime brought an action against MAI, attempting to halt the tender offer. Prime claimed that Drexel must disclose certain pieces of financial information regarding its involvement with MAI because Drexel is also a bidder in the tender offer due to its interest in MAI. Prime asserted that Drexel’s interest in MAI made it a bidder because it could control MAI’s actions, and was thus involved in the tender offer. The district court ruled in favor of Prime. MAI then appealed to the First Circuit Court of Appeals.
Rule of Law
Holding and Reasoning (Coffin, 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 724,000 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
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 724,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 45,600 briefs, keyed to 983 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.