Randall v. Loftsgaarden

Loftsgaarden (defendant) formed a limited partnership marketed as a tax shelter to investors including Randall (plaintiffs), touting cost-saving and tax-benefit strategies in the offering memorandum; when the partnership failed, Randall sued for securities fraud under Exchange Act Section 10(b) and won at the district court, but the court of appeals held the tax benefits Randall had already received from the shelter should be subtracted from his damages award.