| Litigants: | Blue Chip Stamps v. Manor Drug Stores |
| Arguedate: | March 24 |
| Argueyear: | 1975 |
| Decidedate: | June 9 |
| Decideyear: | 1975 |
| Fullname: | Blue Chip Stamps v. Manor Drug Stores |
| Usvol: | 421 |
| Uspage: | 723 |
| Parallelcitations: | 95 S. Ct. 1917; 44 L. Ed. 2d 539 |
| Prior: | Certiorari to the United States Court of Appeals for the Ninth Circuit |
| Holding: | A private damages action under Rule 10b-5 is confined to actual purchasers or sellers of securities and the Birnbaum rule bars respondent from maintaining this suit. |
| Majority: | Rehnquist |
| Joinmajority: | Burger, Stewart, White, Marshall, Powell |
| Concurrence: | Powell |
| Joinconcurrence: | Stewart, Marshall |
| Dissent: | Blackmun |
| Joindissent: | Douglas, Brennan |
| Lawsapplied: | Securities Act of 1933, 48 Stat. 74, as amended, 15 U.S.C. 77a et seq. |
Blue Chip Stamps v. Manor Drug Stores, 421 U.S. 723 (1975), was a decision by the United States Supreme Court, which ruled that only those suffering direct loss from the purchase or sale of stock had standing to sue under federal securities law. The Court noted that under the Securities Exchange Act of 1934, derivative investors are considered buyers or sellers of securities for application of SEC Rule 10b-5.[1]