Fed. Sec. L. Rep. P 94,211 Ronald v. Raschio and Donna F. Raschio, Husband and Wife v. James N. Sinclair

Appellants’ Raschio appeal from a District Court Order granting a Summary Judgment in favor of Hughbanks, Inc. and E. M. Adams and Company and denying a Summary Judgment in favor of appellants. They also ask this Court to declare this case a Class Action for purposes of further proceedings upon remand to the District Court.

The Raschio Complaint is a Civil Action for damages and is predicated upon an alleged violation by appellees and others of Section 10(b) of 15 USCA § 78(j) and Rule 10b-5 of the Securities and Exchange Commission Act of 1934, 17 C.F.R. § 240 . Defendants are the Data Pacific Corporation, its officers, directors, accountants, the principal underwriter of a stock issue and a number of stock brokers, including these appel-lees.

It is alleged that all defendants, singly and in concert, wrongly participated in the sale of shares of common stock of the Data Pacific Corporation by the use of a device, scheme and artifice to defraud prospective purchasers of the securities in question, and that the defendants obtained money and properties from purchasers of the securities by the use of untrue, or the omission of true, statements of material facts.

Rule 10b-5 makes…