Two Stockholders Sue Company, Founder

Tuesday, Aug. 6, 1996 | 11:59 a.m.

The suit, filed Monday in U.S. District Court here, alleges that Stratosphere Corp. and its founder, Bob Stupak, violated Securities and Exchange Commission laws by misleading people about the viability of the project.

The suit alleged that Stupak was selling part of his stock while officials continued to "hype" the project's potential.

The stock hit a high of 14 shortly before the Stratosphere Hotel and Tower opened April 29. It dropped significantly after the company reported an $11 million loss last quarter. The stock closed at 3 3/8 Monday.

Stratosphere spokesman Tom Bruny said company officials had not seen the lawsuit and could not comment.

Stupak resigned from his post as chairman last month, citing differences with majority owner Grand Casinos Inc.

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