Zatkin

MEMORANDUM DECISION

Plaintiff Gary Zatkin filed the present action on behalf of himself and all persons who acquired securities of Wickes Companies, Inc. (Wickes) from August 12, 1980, through March 15,1982, inclusive. The case is one in a series of lawsuits by holders of Wickes securities alleging violation of federal securities law.

Zatkin allegedly purchased 100 shares of common stock in The Wickes Corporation (TWC) in September 1978. TWC and Gamble-Skogmo, Inc. (Gamble) issued a Joint Proxy Statement and Registration Statement and Prospectus in July 1980. On August 12, 1980, the two companies combined to 'form Wickes Companies, Inc. On that date plaintiff exchanged his TWC stock for 100 shares of Wickes common stock.

Plaintiff alleges that defendants employed a deceptive and manipulative scheme to conceal adverse information about the company’s business condition in an effort to maintain an artificially high price for Wick-es securities. The complaint alleges violation of §§ 17(a)(2) and (3), 11,12, and 15 of the Securities Act of 1933, and §§ 10(b) and Rule 10b-5, 20, 14, and Rule 14a-9 of the Securities Exchange Act of 1934. Zatkin also alleges that defendants are liable…