Elkind v. Liggett & Meyers, Inc.

635 F.2d 156 (2nd Cir. 1980)

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Nature of the Case

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Facts

Shareholders brought a class action suit against Liggett (D) for wrongful tipping of inside information about an earnings decline to certain persons who then sold D's shares on the open market. The district court looked to the measure of damages used in cases when a buyer was induced to purchase a company's stock by materially misleading statements or omissions; this was the out of pocket measure of damages.