Fed. Sec. L. Rep. P 96,429 Harry Lewis v. Transamerica Corp.

The plaintiff-appellant Harry Lewis (Lewis) appeals from an order entered by the District Court on November 21, 1974 dismissing the action with prejudice on the grounds “Section 206 of the Investment Advisers Act of 1940 (15 U.S.C. § 80b-6) [Advisers Act] affords no private right of action, and that consequently the Court has no jurisdiction of the plaintiff’s claims . .” We vacate the order and remand.

Lewis’ Complaint:

Lewis is a shareholder of the defendant-appellee Mortgage Trust of America (Trust), and his complaint presents three shareholder derivative and three class actions for violation of the Advisers Act and common law fiduciary duties. He alleges in substance:

The Trust was organized as a California business trust and is qualified as a real estate investment trust under the Internal Revenue Code. It invests primarily in construction and development first mortgage loans. None of its investments have been listed on any national or local securities exchange or offered for trading in any over-the-counter market. The original officers and employees of the Trust were for *238 merly associated with the defendant-appel-lee Transamerica Land Capital, Inc. (TALC), a “first…

This case presents an issue of first impression in our circuit on which reasonable minds may differ. I recognize the strength of the opinions and the articles cited by the majority. I am persuaded, however, by the analysis of Judge Gurfein in Abrahamson v. Fleschner, 568 F.2d 862, 879 (2d Cir. 1977) (concurring and dissenting), and therefore respectfully dissent.

575 F.2d 237 Fed. Sec. L. Rep. P 96,429 Harry LEWIS, Plaintiff-Appellant, v. TRANSAMERICA CORP. et al., Defendants-Appellees. No. 75-1285. United States Court of Appeals, Ninth Circuit. April 19, 1978. Lester L. Levy, New York City (argued), of Garry, Dreyfus, McTernan, Brotsky, Herndon & Pesonen, San Francisco, Cal., for plaintiff-appellant. Louis E. Walcher (argued), and John M. Anderson (argued), Landels, Ripley & Diamond, San Francisco, Cal., for defendants-appellees. Appeal from the United States District Court For the Northern District of California. Before BROWNING and WALLACE, Circuit Judges, and EAST, * Senior District Judge. EAST, Senior District Judge: The plaintiff-appellant Harry Lewis (Lewis) appeals from an order entered by the District Court on November 21, 1974 dismissing the action with prejudice on the grounds "Section 206 of the Investment Advisers Act of 1940 (15 U.S.C. § 80b-6) (Advisers Act) affords no private right of action, and that consequently the Court has no jurisdiction of the plaintiff's claims . . . ." We vacate the order and remand. Lewis' Complaint: Lewis is a shareholder of the defendant-appellee Mortgage Trust of America (Trust),…