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MESSING v. FDI, INC.

Civ. A. No. 74-1687.

439 F.Supp. 776 (1977)

Robert MESSING et al., Plaintiffs, v. FDI, INC., et al., Defendants.

United States District Court, D. New Jersey.

November 3, 1977.

Attorney(s) appearing for the Case

Kasen & Kraemer, Newark, N. J., for plaintiffs.

Sills, Beck, Cummis, Radin & Tischman, Newark, N. J., for defendants FDI, Inc., Harvey A. Braun, Daniel Gregg, Ronald B. Peltz, Richard Carr, Richard W. Palmer and Saul G. Stillman.

McCarter & English, Newark, N. J., for defendant Jeffrey A. Cole.

Lamb, Hutchinson, Chappell, Ryan & Hartung, Jersey City, N. J., for defendants Melvin E. Pearl and Katten, Muchin, Gittles, Zavis, Pearl & Galler.

Conway, Reiseman, Michals, Wahl, Bumgardner & Hurley, Newark, N. J., for defendant Joseph, Miller & Russell, Inc.

Clapp & Eisenberg, Newark, N. J., Jones, Day, Reavis & Pogue, Cleveland, Ohio, for defendant Prescott, Ball & Turben.

OPINION

STERN, District Judge.

In this derivative action, shareholders of FDI, Inc., charge violations of the Securities Act of 1934, 15 U.S.C. §§ 78a et seq. Specifically, they seek relief based on Rules 14a-9 and 10b-5, 17 C.F.R. §§ 240.14a-9 and 240.10b-5, promulgated under 15 U.S.C. §§ 78b and 78j(b), respectively, predicated on the alleged fraud of some of the directors and the alleged negligence of the remaining...

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