Blue Chip Stamps v. Manor Drug Stores

421 U.S. 723 (1975)

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Nature of the Case

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Facts

Under a consent decree, Blue Chip Stamps (D) was to offer a substantial number of its shares of stock to retailers who had used their stamp service in the past but who were not previous shareholders. Manor Drug Stores (P) never bought any shares due to a pessimistic report issued by D on the outlook of D. P alleges that D intentionally made this prospectus overly pessimistic so that D could publicly sell the shares at a higher price.