Henry R. Morgan, Appellant v. Francis Skiddy, Respondents

Summary

The New York Court of Appeals held that directors who knowingly issue or sanction a false prospectus are liable for damages to purchasers who relied on it, while trustees who merely allow their names to be used without knowledge are not liable; the plaintiff need not show the false statement was the sole inducement, and the fraud issues against McVickar, Gaylord and Ashmore were sufficient to send the case to a jury, resulting in reversal and a new trial for those defendants.