Fed. Sec. L. Rep. P 95,902 Franklin Savings Bank of New York v. Gustave L. Levy’s Empirical Analysis
551 F.2d 521 · 1977
Citation profile
17 federal appellate · 2 district · 1 state decisions
How this case has been cited
Cited by 38 later decisions — most recently March 2001 · most notably Sanders v. John Nuveen & Co. (1980), Wigand v. Flo-Tek, Inc. (1979)
17 federal appellate · 2 district · 1 state decisions
Later decisions citing this case, by decade. The current decade is in progress, and our corpus holds fewer opinions from the most recent years, so the latest bars are undercounted — not a real decline.
Relationships
Relies on Ernst & Ernst v. Hochfelder · Blue Chip Stamps v. Manor Drug Stores · Desist v. United States · Coates v. Securities & Exchange Commission · Securities & Exchange Commission v. Texas Gulf Sulphur Co.
Most-quoted passages
The sentences later courts lift from this opinion, ranked by how many decisions quote each — the parts of the opinion doing the work. These counts are smaller than the citation total above because most of the 38 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.
“"Any person who . . . offers or sells a security by means of any untrue statement of material fact or any omission to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they are made, not misleading (the buyer not knowing of the untruth or omission), and who does not sustain the burden of proof that he did not know, and in the exercise of reasonable care could not have known, of the untruth or omission, is liable . . .." (emphasis added)”
3 later decisions quote this exact passage · from the majority“omission,” there was no "implied misrepresentation.” The court rejects this argument and will not discuss the cases which plaintiff purports to rely on. Some are obviously distinguishable. Some cases cited by plaintiff involve "dealers,” not "brokers.” In at least one of plaintiffs "implied misrepresentation” citations, the court simply stated that "where a broker-dealer makes a representation as to the quality of the security he sells, he impliedly represents that he has an adequate basis in fact for the opinion he renders.”
1 later decision quote this exact passage · from the majority“The use of the mails need not be central to the fraudulent scheme and may be entirely incidental to it. Indeed, in the very case before us the only alleged use of the mails was to confirm purchases already induced by the defendants’ deceit. No claim is made that fraudulent matter was mailed or even that the mailings alleged were necessary to the execution of the unlawful scheme.”
1 later decision quote this exact passage · from the majority
How this case has been treated — in progress
Whether each later court followed, distinguished, criticized, or overruled this decision. The treatment classification (task #35) runs highest-cited cases first and lights up here as it reaches this one.