Quimbee logo
DMCA.com Protection Status
From our private database of 16,500+ case briefs...

Wielgos v. Commonwealth Edison Co.

United States Court of Appeals for the Seventh Circuit
892 F.2d 509 (7th Cir. 1989)


Commonwealth Edison Company (Commonwealth Edison) (defendant), an Illinois electric-utility company, operated several nuclear reactors and was constructing five more. The reactors could not be operated without the approval of the Nuclear Regulatory Commission (NRC), which was becoming increasingly difficult to obtain due to incidents such as the Chernobyl disaster. In September 1983, Commonwealth Edison put 3,000,000 shares on the shelf under Rule 415 of the Securities and Exchange Commission, 17 C.F.R. § 230.415, including a registration statement with over 100 incorporated pages. The shares were sold on December 5, 1983, at a market price of $27.625. Stanley Wielgos (plaintiff) bought 500 shares. The NRC considered giving a license to one of the reactors being constructed by Commonwealth Edison, but on January 13, 1984, the application was denied. As a result, Commonwealth Edison’s stock dropped to $21.50 with a loss of equity of about $1,000,000,000. Each year, Commonwealth Edison would publish a projection regarding the cost of completion of each project. With each projection, Commonwealth Edison would increase the estimated costs. When the application had been denied on January 13, 1984, Commonwealth Edison had added $100,000,000 in costs to the projections. These estimates proved to be erroneous. Wielgos filed suit, demanding $6.125 per share, the amount by which the stock had declined. Wielgos also contended that Commonwealth Edison had violated § 11 of the Securities Act of 1933, 15 U.S.C. § 77k. The district court found for Commonwealth Edison, and Wielgos appealed.

Rule of Law


Holding and Reasoning (Easterbrook, 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 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.

  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. Read more about Quimbee.

Here's why 409,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 16,500 briefs, keyed to 223 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.

Questions & Answers

Have a question about this case?

Sign up for a free 7-day trial and ask it

Sign up for a FREE 7-day trial