# Fed. Sec. L. Rep. P 95,448 Arnold Marshel v. Afw Fabric Corp., Barry L. Swift v. Concord Fabrics Inc.

> Court of Appeals for the Second Circuit · February 13, 1976 · 533 F.2d 1277

URL: https://www.frixlaw.com/law-library/cases/9462660

## Case

- **Full name:** Arnold MARSHEL, Plaintiff-Appellant, v. AFW FABRIC CORP. Et Al., Defendants-Appellees; Barry L. SWIFT, Plaintiff-Appellant, v. CONCORD FABRICS INC. Et Al., Defendants-Appellees
- **Court:** Court of Appeals for the Second Circuit
- **Decided:** February 13, 1976
- **Citations:** 533 F.2d 1277
- **Precedential status:** Published
- **Opinion:** Concurrence by Smith
- **Judges:** Smith, Hays, Meskill
- **Cited by:** 31 later opinions in the Frix Law Library

## Citator (automated)

- **Red flag:** Vacated by Fed. Sec. L. Rep. P 95,447 S. William Green v. Santa Fe Industries, Inc., 533 F.2d 1283 (1976).
- Negative treatments: 2
- Distinguished by: 0
- Full citator and citing cases: https://www.frixlaw.com/law-library/cases/9462660

## Opinion text

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).

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Source: Frix Law Library, https://www.frixlaw.com/law-library/cases/9462660. Public record. Not legal advice.