Court Opinion

ID: 9455646
Source: CourtListenerOpinion
Date Created: 2023-08-04 19:28:25.449336+00
Date Added: 2024-06-11T17:34:40.493263
License: Public Domain

MOORE, Circuit Judge
(concurring in part):
I concur in the affirmance of the order denying a preliminary injunction. Under customary procedure, the issues framed by the pleadings would come on *578for trial. Upon such facts as might be developed upon such a trial and the conclusions of law found to be applicable thereto, the case would come before us on appeal. In this case, however, the majority, in effect, give their conclusions of law before trial and appeal.
Quite apart from giving the trial court an opportunity to fulfill its role in arriving at a decision, the majority, in their advisory opinion, misconstrue, I believe, the May 8th press release and Rule 135.
There should be little doubt that if the May 8th agreement had been misstated, a suit, alleging misrepresentation and fraud, would be before us. And yet any omission of the all important terms proposed would have been materially misleading. The exchange was to be for “Bangor Punta securities and/or cash having a value, in the written opinion of The First Boston Corporation, of $80 or more.” This was “the basis upon which the exchange is proposed to be made,” Rule 135(c) (4). The “offer to sell” exemption required this information. The most important element of “basis” was, of necessity, some indication as to value. $80 in cash needed no evaluation; the package of securities, not then final, had to have some equivalent measure. To say, as does the majority, that the “announcements that the package of securities offered by Bangor Punta would be valued at $80 oversteps the exemption and, therefore, makes the press release an offer to sell,” turn a preliminary and informative press release, which advises the public of a forthcoming registration statement, into a prospectus would — or at least should — come as a shock to the S.E.C.
As to the stock purchases by Bangor Punta during its exchange offer, the age-old question is again presented: does a rule or statute merely codify an existing decision-made rule of law or does it create a new rule? The very fact that Rule 10b-6 was to be quite prospective in operation is rather convincing that the latter is the proper conclusion.
In summary, I would affirm on the only issue before us, the denial of a preliminary injunction, and would withhold any other opinions until we have an opportunity to pass upon such future appeal as may come before us in this case.