Beecher v. Able

435 F. Supp. 397 (1975)

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Nature of the Case

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Facts

The court found that Douglas Aircraft Company, Inc. (D) had on July 12, 1966, sold $75 million of its 4 3/4% convertible debentures due July 1, 1991, under a materially false prospectus. The parties have now presented to the court their proofs as to damages. There is a dispute as to 'the time such suit was brought.' There is a dispute as to the value of the debentures as of the time of suit. There is disagreement as to the cause or causes of the drop in the value of the debentures after September 26, 1966. There is a dispute as to the effect of later market action on certain damage claims. Neither party wanted to value the debentures at market value. Ps argued that the value should be below market price due to the financial difficulties that D was experiencing. D argued that due to D’s good prospects of financial recovery that value should be above market price. D also wanted the court to account for market forces before the suit related to third-quarter earnings and panic selling.