Court Opinion

ID: 9462660
Source: CourtListenerOpinion
Date Created: 2023-08-04 22:46:41.498893+00
Date Added: 2024-06-11T17:37:42.325939
License: Public Domain

J. JOSEPH SMITH, Circuit Judge
(concurring):
I concur. I find it difficult to reconcile the 10(b) basis of the holding with the opinion in Popkin v. Bishop, 464 F.2d 714 (2d Cir. 1972). However, this case illustrates the opportunities for fraudulent treatment of securities holders in corporations “going private” for no legitimate corporate purpose even though with full, even brazen disclosure. It casts doubt on the desirability of a “full disclosure” bar in all situations. In any case, grant of the injunction here is sustainable on the ground of breach of the fiduciary duty under New York law of the majority shareholders in their admitted self-dealing. Compare, Bryan v. Brock and Blevins Co., 490 F.2d 563 (5th Cir.), cert. denied, 419 U.S. 844, 95 S.Ct. 77, 42 L.Ed.2d 72 (1974).