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KATZ v. FINANCIAL CLEARING & SERVICES CORP.

No. 90 Civ. 5713 (TPG).

794 F.Supp. 88 (1992)

Simon KATZ, Rose Katz, Volvi Katz, Abraham Katz and Abraham Tusk, Plaintiffs, v. FINANCIAL CLEARING & SERVICES CORPORATION, Defendant.

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

April 30, 1992.

Attorney(s) appearing for the Case

Richard Claman, Seiden, Stempel, Bennett & D'Agostino, New York City, for plaintiffs.

Eva H. Posman, Gaston & Snow, New York City, for defendant.

OPINION

GRIESA, District Judge.

This is a securities fraud action brought by five securities investors against a clearing brokerage firm. Plaintiffs assert two claims under Section 10(b) of the Securities Exchange Act of 1934, 12 U.S.C. § 78j, and SEC Rule 10b-5 promulgated thereunder. In their first claim, plaintiffs allege that Financial Clearing & Services Corporation fraudulently induced plaintiffs to enter into customer account agreements through...

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