Court Opinion

ID: 9679662
Source: CourtListenerOpinion
Date Created: 2023-08-24 07:02:03.960763+00
Date Added: 2024-06-11T18:17:17.867441
License: Public Domain

DONNELLY, Judge,
concurring in result.
The teaching of Landreth Timber Company v. Landreth, 471 U.S. 681, 105 S.Ct. 2297, 85 L.Ed.2d 692 (1985), is that if an instrument bears the label “stock” and possesses the characteristics usually associated with common stock a purchaser may assume that the federal securities laws apply; but that in a case involving an instrument not easily characterized as a “security” the Court will look to whether the transaction “involves an investment of money in a common enterprise with profits to come solely from the efforts of others.” Securities and Exchange Commission v. W.J. Howey Co., 328 U.S. 293, 301, 66 S.Ct. 1100, 1104, 90 L.Ed. 1244 (1946).
I am persuaded that the Howey test should be followed in this case and that Norden was an active participant in the common enterprise. Chapter 409, RSMo 1986, does not apply.
I concur in the result.