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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The District Court granted the motion to dismiss. Forman v. Community Services, Inc., 366 F. Supp. 1117 (SDNY 1973). It held that the denomination of the shares in Riverbay as “stock” did not, by itself, make them securities under the federal Acts. The court further ruled, relying primarily on this Court’s decisions in SEC v. C. M. Joiner Leasing Corp., 320 U. S. 344 (1943), and SEC v. W. J. Howey Co., 328 U. S. 293 (1946), that the purchase in issue was not a security transaction since it was not induced by an offer of tangible material profits, nor could such profits realistically be expected. In the District Court’s words, it was *846“the fundamental nonprofit nature of this transaction” which presented “the insurmountable barrier to [respondents’! claims in th[e] federal court.” 366 F. Supp., at 1128.10