Sullivan
Sullivan v. Chase Investment Services of Boston, Inc.
Opinion
lead Opinion
Renfrew, J.
MEMORANDUM OF OPINION
This is an action brought by four individuals against Chase Investment Services of Boston, Inc. (“CIS”), an investment advisory service, Sullivan & Worcester, a law firm which represented CIS; Dean Witter & Company, Inc. (“Witter”), E. F. Hutton &' Company, Inc. (“Hutton”), and Mitchum, Jones & Templeton, Inc. (“Mitchum”), three brokerage houses which were involved in the sale of CIS services; and 21 other individuals and corporations affiliated with these five principal defendants. The lawsuit alleges that the defendants fraudulently marketed the investment advisory services of CIS to approximately 1541 clients from April 1, 1971, through May 31, 1973, and that those clients have a right to recover substantial amounts of money which they lost as a result of this fraud.
In a Memorandum of Opinion filed on March 25,1977, and reported at 434 F.Supp. 171 , the Court concluded that plaintiffs had an implied cause of action under the Investment Advisers Act of 1940, 15 U.S.C. §§ 80b-l et seq., against an investment adviser who defrauds any client or prospective client and against individuals and businesses (including lawyers and law firms) that are not…