Donald Trump Casino Securities Litigation—Taj Mahal Litigation Kaufman v. Trump's Castle Funding

by the United States Court of Appeals for the Third Circuit

7 F.3d 357

Sidney L. KAUFMAN, suing individually and on behalf of a class of persons similarly situated; Jerome Schwartz, suing individually and on behalf of a class of persons similarly situated; Peter Stuyvesant, Ltd., on behalf of itself and all others similarly situated; Susan Cagan; Eric Cagan; David E. Dougherty; Jean Curzio; Alexander L. Charnis; Dorothy Arkell; Fred Glossner; Herman Krangel; Robert Kloss; Helen Kloss; Fairmount Financial Corp.; Joanne Gollomp; Dino Del Zotto

and

Sidney L. KAUFMAN, suing individually and on behalf of a class of persons similarly situated

and

Jerome SCHWARTZ, suing individually and on behalf of a class of persons similarly situated

and

PETER STUYVESANT, LTD., on behalf of itself and all others similarly situated

and

Susan CAGAN; Eric Cagan; David E. Dougherty; Jean Curzio

and

Alexander L. CHARNIS; Dorothy Arkell

and

FAIRMONT FINANCIAL CORP.; Joanne Gollomp, on behalf of themselves and all others similarly situated

and

Robert KLOSS; Helen Kloss

and

Fred GLOSSNER; Herman Krangel

and

Dino DEL ZOTTO

v.

TRUMP'S CASTLE FUNDING; Trump's Castle Associates Limited Partnership, a New Jersey Limited Partnership; Trump Taj Mahal Funding, Inc., a New Jersey Corporation; Trump Taj Mahal Associates Limited Partnership, a New Jersey Limited Partnership; Donald J. Trump; Robert S. Trump; John O'Donnell; Nathan Katz; Tim Maland; Francisco Tejeda; Julian Menarguez; Harvey I. Freeman; Paul Henderson; Patrick C. McKoy; Edward M. Tracy; Michael S. Vautrin;Jeffrey A. Ross; John P. Belisle; Timothy G. Rose; Lori Taylor; C. "Bucky" Willard; The Trump Organization, Inc.; Trump Taj Mahal, Inc.; Merrill Lynch, Pierce, Fenner & Smith Incorporated.

and

TRUMP'S CASTLE FUNDING; Trump's Castle Associates Limited Partnership, a New Jersey Limited Partnership; Trump Taj Mahal Funding, Inc., a New Jersey Corporation; Trump Taj Mahal Associates Limited Partnership, a New Jersey Limited Partnership; Donald J. Trump.

and

TRUMP'S CASTLE FUNDING, INC. (A New Jersey Corporation); Trump's Castle Associates Limited Partnership (A New Jersey Limited Partnership); Trump Taj Mahal Funding, Inc. (A New Jersey Corporation); Trump Taj Mahal Associates Limited Partnership (A New Jersey Limited Partnership); Donald J. Trump.

and

Donald J. TRUMP; Robert S. Trump; John O'Donnell; Trump Plaza Funding, Inc.; Nathan Katz; Tim Maland; Trump Plaza Associates; Francisco Tejeda; Julian Menarguez; Harvey I. Freeman; Paul Henderson; Patrick C. McKoy; Edward M. Tracy; Michael S. Vautrin; Jeffrey A. Ross; John P. Belisle; Timothy G. Rose; Trump's Castle Funding, Inc.; Lori Taylor; Trump's Castle Associates Limited Partnership.

and

Donald J. TRUMP; Robert S. Trump; Harvey I. Freeman; C. "Bucky" Willard; Trump Taj Mahal Funding, Inc.; Trump Taj Mahal Associates Limited Partnership; The Trump Organization, Inc.; Trump Taj Mahal Incorporated; Merrill Lynch, Pierce, Fenner & Smith Incorporated.

and

Donald J. TRUMP; Robert S. Trump; Harvey I. Freeman; C. "Bucky" Willard; Trump Taj Mahal Funding, Inc.; Trump Taj Mahal Associates Limited Partnership; The Trump Organization, Inc.; Merrill Lynch, Pierce, Fenner & Smith Incorporated.

and

Donald J. TRUMP; Harvey S. Freeman; Robert S. Trump; The Trump Organization, Inc.; Merrill Lynch, Pierce, Fenner & Smith Incorporated; Trump Taj Mahal Funding, Inc.; Trump Taj Mahal, Inc.; Trump Taj Mahal Associates Limited Partnership.

and

Donald J. TRUMP; Robert S. Trump; Harvey I. Freeman; C. "Bucky" Willard; Trump Taj Mahal Associates Limited Partnership; The Trump Organization, Inc.; Trump Taj Mahal, Inc.; Merrill Lynch, Pierce, Fenner & Smith Incorporated. and

Donald J. TRUMP; Harvey S. Freeman; Robert S. Trump; The Trump Organization, Inc.; Merrill Lynch, Pierce, Fenner & Smith Incorporated; Trump Taj Mahal Funding, Inc.; TrumpTaj Mahal, Inc.; Trump Taj Mahal Associates Limited Partnership.

and

Donald J. TRUMP; Robert S. Trump; Harvey I. Freeman; C. "Bucky" Willard; Trump Taj Mahal Funding, Inc.; Trump Taj Mahal Associates; The Trump Organization, Inc.; Trump Taj Mahal, Inc.; Merrill Lynch, Pierce, Fenner & Smith Incorporated, Joanne Gollomp, Susan Cagan, Eric Cagan, David E. Dougherty, Jean Curzio, Robert and Helen Kloss, Fred Glossner, Herman Krangel, Sidney Kaufman, Jerome Schwartz, Dino Del Zotto, Alexander L. Charnis and Dorothy Arkell, on behalf of themselves and all others similarly situated, Appellants.

No. 93-1062

United States Court of Appeals,
Third Circuit.

July 27, 1993, Argued
October 6, 1993, Filed

Stuart D. Wechsler (argued), Joel C. Feffer, New York City, Stanley R. Wolfe, Todd S. Collins, Berger & Montague, P.C., Philadelphia, PA, Carl D. Poplar, Cherry Hill, NJ, Gerald Jay Rodos, Barrack, Rodos & Bacine, Philadelphia, PA, Robert S. Schachter, Zwerling, Schachter & Zwerling, Bruce E. Gerstein, Garwin, Bronzaft, Gerstein & Fisher, New York City, Charles V. Van de Walle, Martin, Van de Walle, Guardino & Donohue, Great Neck, NY, Jared Stamell, Joseph J. Tabacco, Jr., Stamell, Tabacco & Schager, Joseph H. Weiss, New York City, Michael A. Cohan, Cohan & Eckhaus, Parlin, NJ, James V. Bashian, New York City, C. Oliver Burt, III, James R. Malone, Mark C. Rifkin, Debra N. Nathanson, Greenfield & Chimicles, Haverford, PA, Howard A. Specter, Pittsburgh, PA, for appellants.

Richard L. Posen (argued), Willkie Farr & Gallagher, New York City, John J. Barry, Clapp & Eisenberg, P.C., Newark, NJ, Stuart J. Baskin (argued), Shearman & Sterling, New York City, for appellees.

Before: BECKER, ALITO, Circuit Judges and ATKINS, District Judge.*OPINION OF THE COURT

BECKER, Circuit Judge.