DENNY v. CAREY 72 F.R.D. 574 (E.D. Pa. 1976) CASE BRIEF

DENNY V. CAREY
72 F.R.D. 574 (E.D. Pa. 1976)
NATURE OF THE CASE: This was a class action for violation of federal securities laws and a rule 12(b)(6) motion to dismiss.
FACTS: Denny (P) brought a class action suit on behalf of himself and other purchasers of First Pennsylvania Corporations securities. P charged that Carey (D) and others had violated federal and state securities laws. P alleged that D acted fraudulently to conceal the financial condition of First Pennsylvania Corporation. D issued false statements that avoided the accrual of losses, thereby leaving loan reserves in deficit and inflating equity and net income. D claimed that P's allegations failed to state the circumstances constituting fraud with the particularity required to comply with Fed. R. Civ. P. 9(b). D contends that the allegations are conclusionary with no statement of facts upon which the belief that fraud was perpetrated.

ISSUE:


RULE OF LAW:


HOLDING AND DECISION:


LEGAL ANALYSIS:





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