Document: 406 U.S. 128 92 S.Ct. 1456 31 L.Ed.2d 741 AFFILIATED UTE CITIZENS OF the State of UTAH et al., Petitioners,v.UNITED STATES al. No. 70—78. Argued Oct. 18, 1971. Decided April 24, 1972. Rehearing Denied June 12, See 407 916, 2430. Syllabus The Ute Partition Act was designed to provide for partition and distribution tribe's assets between mixed-blood full-blood members; termination federal supervision over trust restricted property mixed-bloods; a development program full-bloods with view toward terminating them. In addition cash land, tribe owned oil, gas, mineral rights (principally oil shale deposits underlying reservation) unadjudicated unliquidated claims against Government. provided that upon publication final membership rolls, tribal business committee (representing full-bloods) mixed-bloods' 'authorized representatives' were start dividing could be practicably distributed, based relative number persons in each group, further plan prepared distributing individual members. After had received his distributive share, restrictions removed except as remaining interest property. not distributable jointly managed by representatives. Under Act, mixed-bloods, way selecting their representatives, organized Affiliated Citizens (AUC) an unincorporated association, which, authorized statute, created Distribution Corp. (UDC) manage (jointly committee) unad-judicated or Government part mixed-bloods. UDC issued 10 shares its stock name made agreement First Security Bank Utah (the bank) bank become transfer agent, hold certificates issue receipts shareholders. UDC's articles, shareholder desiring dispose prior August 27, 1964, give first-refusal members absent which no sale valid. A nonmember only if member accepted offer, price lower than offered bear stamp revealing these conditions, along caveat did represent ordinary corporate shares; stock's future value determined; should retained shareholder's benefit. Upon nonmember, seller furnish affidavit reservation superintendent stating amount he received. relationship involving divided contemplated terminated proclamation Secretary Interior effective 1961. Auc Case. AUC, acting itself 490 members, 1968 sued United States pro rate 27% estate determination AUC entitled committee. Jurisdiction asserted under 25 U.S.C. § 345 28 §§ 1399 2409. District Court granted Government's motion dismiss, Appeals affirmed. Reyos February 1965, group mixed-bloods (12 whom selected 'bellwether plaintiffs' initial trial purposes) bank, two employees (Gale Haslem) (under Tort Claims Act) States, charging violations Securities Exchange 1934 SEC's Rule 10b—5, prohibits 'any device, scheme, artifice defraud' connection securities transactions. claimed involved sales 1963 1964 (some before some after 27). Court, inter alia, found sold 1,387 nonmembers, Haslem buying 50 (after 1964) Gale 63 (44 date 19 after). 12 plaintiffs 120 shares, six. Thirty-two other whites bought from during 1963—1964 period. 1964—1965 at $300 $700 per while range on $500 $700. various commissions services transfers solicited contracts open purchases premises hours, necessary affidavits papers, using, best, 'informal' procedures. concluded reason know non-Indians failed perform duty discourage prevent sales; devised scheme acquire themselves others less fair value; notice employees' improper activities. court defendants (with certain exceptions applicable Government) liable plaintiffs, assessed damages using $1,500-per-share times sales. reached figure taking account reservation, coal, minerals; petitioners' interests Indian Commission award; Government; specific prices share whites; fact (who heavy selling pressure) so well informed about potential influence Gale's Haslem's activities prices; opinion evidence worth above share; factors. measure seller, held, difference time what reversed substantial part, holding 1961 owed petitioners where they personally purchased own accounts resale undisclosed principal higher price, but instances, actions held ministerial; bank's liability extend beyond Haslem's. Court's valuation lack record support, proper 'the profit defendant resale' or, resale, prevailing market purchase plaintiffs.' petition certiorari covering both case granted. Held: Case 1. properly dismissed want jurisdiction unconsented suit States. Pp. 141—143. (a) Though 345, has consented suits enforce Indian's right allotment AUC's been subject allotment. 142—143. (b) Title 2409 are inapplicable, since those provisions confer respect is tenant common joint tenant, situation here. P. 143. 2. reservation. 143—144. 3. ended property, including first refusal specified articles seeking sell shares. 149—150. 4. correctly determined violated 10b—5 making misstatements material fact, namely, made, erred there violation unless disclosed reliance misrepresentations. All facts withheld sense reasonable investor might have considered them important decision. 150—154. 5. coextensive Haslem. 154. 6. correct would fraudulent conduct (except more seller's actual loss, defendant's damages). 154—155. 7. $1,500 adequate support. 155—156. Cir., 431 F.2d 1349, affirmed; 1337, affirmed part. Parker M. Nielson, Salt Lake City, Utah, petitioners. A. Raymond Randolph, respondent hac vice, special leave Court. Marvin J. Bertoch, respondents N.A., others. Mr. Justice BLACKMUN delivered 1 These consolidated cases center Supervision Termination 1954 (hereafter Act), 68 Stat. 868, amended, 70 936 76 597, 677—677aa; 1934, 48 881, 3(a)(4) (5), 10(b) 15(c)(1), 15 78c(a)(4) 78j(b) 78o(c)(1); emergence (AUC), (UDC), corporation; alleged victimization shareholders 2 * Background 3 Act1 pertained Tribe Uintah Ouray Reservation Utah. At Act's adoption 1,765,2 consisting 439 mixed-bloods3 1,326 full-bloods. Section stated purpose, namely 'to . .. thereof; Federal trust, said tribe; thereof, assist preparing property.' 677. thenestimated cash, receivable, land $20,702,885.4 possessed additional reservation), 4 8 677g, called preparation rolls finality rolls. 5, 677d, shall thereafter consist exclusively members,' 'shall therein otherwise provided' Act. 5 10, 677i, when published, committee, representing full-bloods, 'commence division then susceptible equitable practicable distribution.' This 'upon comprising roll group.'5 division, prepare group's 13 677l. directly whole through device corporation entity interest, any is, rights, distribution. 16, 677o. 'declaring such terminated.' 23, 677v. Those assets, estate, excepted plans, 'managed Tribal Business Committee representatives group.' 677i. 6 677e, organize, adopt constitution bylaws, provide, constitution, selection power take action required taken 7 &

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