Under a consent decree, Blue Chip Stamps (D) was to offer a substantial number of its shares of stock to retailers who had used their stamp service in the past but who were not previous shareholders. Manor Drug Stores (P) never bought any shares due to a pessimistic report issued by D on the outlook of D. P alleges that D intentionally made this prospectus overly pessimistic so that D could publicly sell the shares at a higher price.

This section contains the nature of the case and procedural background.

The legal issues presented in this case will be displayed here.

The court's holding and decision will be displayed here.

Legal analysis from Dean's Law Dictionary will be displayed here.