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STARKMAN v. WARNER COMMUNICATIONS, INC.

85 Civ. 7949 (JMW).

671 F.Supp. 297 (1987)

Sheldon STARKMAN, et al., Plaintiffs, v. WARNER COMMUNICATIONS, INC., et al., Defendants.

United States District Court, S.D. New York.

October 13, 1987.

Attorney(s) appearing for the Case

Bader & Bader, White Plains, N.Y., for plaintiffs; I. Walton Bader, New York City, of counsel.

Paul, Weiss, Rifkind, Wharton & Garrison, New York City, for defendant Warner Communications Inc.; Leslie Gordon Fagen and C. William Phillips, of counsel.

Skadden, Arps, Slate, Meagher & Flom, New York City, for individual defendants; Barry H. Garfinkel and Jeremy A. Berman, of counsel.

MEMORANDUM AND ORDER

WALKER, District Judge:

INTRODUCTION

This case presents the question, among others, of corporate and insider liability under the anti-fraud provision of the Securities and Exchange Act to those who trade in options to buy the corporation's stock.

Plaintiffs bring this action alleging violations of Section 10(b) of the Securities and Exchange Act of 1934, as amended, 15 U.S.C. Section 78j(b), and Rule 10(b)(5) promulgated...

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