SEC v. Ralston Purina Co.

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Securities and Exchange Commission v. Ralston Purina Co.
Supreme Court of the United States
Argued April 28, 1953 Decided June 8, 1953
Full case name	Securities and Exchange Commission v. Ralston Purina Co.
Citations	346 U.S. 119 (more) 73 S. Ct. 981; 97 L. Ed. 1494; 1953 U.S. LEXIS 2688
Case history
Prior	On a complaint brought by the Securities and Exchange Commission under § 20 (b) of the Securities Act of 1933, seeking to enjoin respondent's unregistered offerings of its stock to its employees, the District Court held the exemption of § 4 (1) applicable and dismissed the suit. 102 F. Supp. 964. The Court of Appeals affirmed. 200 F.2d 85. The Supreme Court granted certiorari. 345 US. 903.
Holding
SEC
Court membership
Chief Justice Fred M. Vinson Associate Justices Hugo Black · Stanley F. Reed Felix Frankfurter · William O. Douglas Robert H. Jackson · Harold H. Burton Tom C. Clark · Sherman Minton
Case opinion
Majority	Clark, joined by Vinson, Black, Reed, Frankfurter, Douglas, Minton
Jackson took no part in the consideration or decision of the case.
Laws applied
Securities Act of 1933, § 4(1)

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Securities and Exchange Commission v. Ralston Purina Company

Securities and Exchange Commission v. Ralston Purina Co., 346 U.S. 119 (1953),^[1] was a case in which the United States Supreme Court held that a corporation offering "key employees" equity stock shares is eligible for a transaction-based exemption from securities registration under Section 4(1) [Now Section 4(a)(2)] of the Securities Act of 1933. This exemption would generally not apply when offered to all employees, including rank-and-file employees, as the investors should be "sophisticated investors."