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Contracts Keyed to Dawson
Rissman v. Rissman
Citation:213 F.3d 381.
Tiger Electronics was a toy manufacturer formed by Gerald Rissman. In 1979, Gerald gave his sons Arnold, Randall, and Samuel stock in the company. In 1986, Gerald and Samuel left the company leaving Randall (2/3) and Arnold (1/3) as owners. Eventually Randall and Arnold had a falling out, and Arnold sold his shares to Randall for $17 million. Pursuant to the stock transaction agreement, Arnold agreed that he had “not relied upon any representations of any party.” He further warranted that “no promise or inducement for this Agreement had been made to him…” and “this Agreement is executed… freely and voluntary, and without reliance upon any statement or representation by [Randall].” Thirteen months after the sale, Randall sold all of Tiger Electronics’ assets to Hasbro for $335 million. Arnold then claimed that Randall had informed him prior to selling his stock he would never sell the company to a third-party or take the company public.
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