In Re Equity Funding Corporation Of America Securities Litigation

603 F.2d 1353 In re EQUITY FUNDING CORPORATION OF AMERICA SECURITIES LITIGATION. CHEMICAL BANK, as Indenture Trustee, Robert E. Pittis, Marie Claire Pittis, Max Newmark and Elaine Newmark, Appellants, v. Sylvia CONFINO et al., as Representatives of the Plaintiff Classes, Appellees. No. 77-3735. United States Court of Appeals, Ninth Circuit. Sept. 12, 1979. Roger A. Ferree (argued), Los Angeles, Cal., for appellants. Marshall B. Grossman (argued), Schwartz, Alschuler & Grossman, Jack Corinblit, Los Angeles, Cal., for appellees. Appeal from the United States District Court for the Central District of California. Before BROWNING, BARNES and ELY, Circuit Judges. BARNES, Senior Circuit Judge: 1 This is an appeal from the district court's order approving a plan of allocation of settlement funds in the Equity Funding Corporation of America Multi-district Securities Litigation. The major issue centers on the district court's decision to reduce the "net adjusted loss" of each claimant by the value of shares and cash received by such claimants in a related Chapter X reorganization proceeding. I. FACTS 2 The underlying litigation arose from the securities fraud perpetrated through the…