Representation of Accounting Firm
Jan 01, 1985OUTCOME:
Represented accounting firm in malpractice action involving claims that defendants violated federal securities laws. Successfully obtained summary judgment in favor of defendant on the grounds that the ... sale of 50% of the stock of the company at issue was a "sale of business" rather than the sale of a "security" under federal law. The Third Circuit Court of Appeals reversed, rejecting the "sale of business" doctrine, and the United States Supreme Court granted certiorari to resolve a dispute between circuits on the issue. The Court affirmed the Third Circuit, holding that the stock constituted a "security" even if it effectively constituted a "sale of the business." Gould v. Ruefenacht, 737 F.2d 320 (3d Cir.), aff'd, 471 U.S. 701 (1985).
