Field v. Trump
The case is a putative class action concerning a leveraged buy-out of Pay 'n Save Corporation. The plaintiff alleged violations of federal securities laws, RICO, and state common law. Specifically, Count I claimed that an unlawful premium was paid to Stroum and Sloan during a tender offer, violating Section 14(d)(7) and Rule 10b-13. Count II alleged breach of fiduciary duty and non-disclosure under federal securities laws. Count III accused defendants of a pattern of racketeering activity under RICO. The court granted the defendants' motion to dismiss, finding no tender offer in effect for Count I, that Count II failed to state a federal securities claim for breach of fiduciary duty, and that Count III did not sufficiently allege a "pattern" of racketeering activity as the acts constituted a single, non-ongoing scheme. Pendent state law claims were dismissed, and leave to replead was denied.