Angelastro v. Prudential-Bache Securities, Inc.

113 F.R.D. 579 (D.N.J. 1986)

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Nature of the Case

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Facts

Laura Angelastro (P) filed a complaint alleging that Bache (D) engaged in practices which operated as a fraud and deceit upon plaintiff and other customers of D. P contends D violated Ruled 10b-5 and 10b-16. P contends that D omitted to state material facts necessary in order to make statements made to P and other customers not misleading. The seven categories of material facts which P alleges should have disclosed are: (a) advance notice of the interest rate charged to margin customers; (b) disclosure of the formula by which interest charges were assessed; (c) computation of daily interest charges assessed against margin accounts; (d) effect of increases in the market value of the underlying securities; (e) variable interest rates available to margin customers and the procedures by which variable rates could be obtained; and (f) inadequate training and supervision of employees resulting in the dissemination of inadequate or inaccurate information to customers. P alleges that from these failures to disclose, she and other customers purchased substantial quantities of securities for excessive consideration. P alleges that as a consequence of uniform and systematic concealment of material facts by defendants, the margin customers of D had no way of effectively calculating, at the time of purchase, the full cost of the securities. P seeks to maintain the action as a class action. P filed a motion requesting that this action be certified as a class action pursuant to F.R. Civ. P. 23. In addition, plaintiff has filed a motion for partial summary judgment pursuant to F.R. Civ.P. 56.