Opinion ID: 406453
Heading Depth: 2
Heading Rank: 3

Heading: Appellant's Theories

Text: 20 Plaintiff-appellant Rathborne has advanced two theories in support of his contention that the transactions here in question entailed a purchase or sale of securities and that he himself was a purchaser who has standing to assert a 10b-5 claim. First; Rathborne argues that the RLC-RPI asset-for-stock exchange constituted a purchase or sale of securities and that as a recipient of the newly issued RPI stock, he was a purchaser with standing to assert a 10b-5 claim. Second; Rathborne contends that the pro rata distribution of RPI stock to RLC shareholders was itself a sale of securities and that as a recipient of these securities, he was a purchaser. 21 Thus, we are asked to decide whether the transactions challenged by the appellant involved a purchase or sale of securities and whether the appellant himself can be considered a purchaser with standing to assert a 10b-5 claim. In treating these issues, we will assume all of the plaintiff's factual allegations to be true and then decide whether these facts can be construed as giving rise to a valid 10b-5 cause of action. 14