Opinion ID: 109604
Heading Depth: 2
Heading Rank: 3

Heading: Court of Appeals' Decision on Preliminary Injunction April 28, 1970

Text: On appeal, the Court of Appeals for the Second Circuit, sitting en banc, affirmed Judge Tenney's denial of injunctive relief. 426 F. 2d 569 (1970). In an opinion by Judge Waterman, the court held that Bangor had properly been allowed to continue soliciting Piper stock. Chris-Craft was free [at the time of the District Court's decision] to compete equally with Bangor Punta for the remaining Piper shares, and it did so. We do not understand Chris-Craft to allege that prior misdeeds of Bangor Punta so determined the course of the competition. . . that Chris-Craft was placed at any real disadvantage. Id., at 573. The court concluded, however, that Bangor had violated SEC gun-jumping provisions and Rule 10b-6, unless the three block purchases fell within an established exemption to the Rule. [9] Chief Judge Lumbard in dissent agreed that injunctive relief was unwarranted, but also accepted the District Court's determination that Bangor had not violated the securities laws. [10] Id., at 579. The Court of Appeals remanded the case for further proceedings, so that Bangor, among other things, could attempt to establish that its block purchases fell within an exemption to Rule 10b-6.