DRAFT FOR ATTORNEY REVIEW — NOT FINAL

United Housing Foundation, Inc. v. Forman, 421 U.S. 837 (1975)

Citation
United Housing Foundation, Inc. v. Forman, 421 U.S. 837 (1975)
Parent Document
United Housing Foundation, Inc. v. Forman, 421 U.S. 837 (1975)
Effective Date
1975-10-06
Original Source
https://www.courtlistener.com/opinion/109272/united-housing-foundation-inc-v-forman/ ↗

Other Sections in This Document (195)

Full Text

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These increases in the rental charges precipitated the present lawsuit. Respondents, 57 residents of Co-op City, sued in federal court on behalf of all 15,372 apartment owners, and derivatively on behalf of Riverbay, seeking upwards of $30 million in damages, forced rental reductions, and other “appropriate” relief. Named as defendants (petitioners herein) were UHF, CSI, River-bay, several individual directors of these organizations, the State of New York, and the State Private Housing Finance Agency. The heart of respondents’ claim was that the 1965 Co-op City Information Bulletin falsely represented that CSI would bear all subsequent cost increases due to factors such as inflation. Respondents further alleged that they were misled in their purchases of shares since the Information Bulletin failed to disclose several critical facts.8 On these bases, *845respondents asserted two claims under the fraud provisions of the federal Securities Act of 1933, as amended, § 17 (a), 48 Stat. 84, 15 U. S. C. § 77g (a); the Securities Exchange Act of 1934, as amended, § 10 (b), 48 Stat. 891, 15 TJ. S. C. § 78j (b); and 17 CFR § 240.10b-5 (1975). They also presented a claim against the State Financing Agency under the Civil Rights Act of 1871, 42 U. S. C. § 1983, and 10 pendent state-law claims.