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UNITED OPERATING CO. v. KARNES

No. 77 Civ. 1663 (GLG).

482 F.Supp. 1029 (1980)

UNITED OPERATING COMPANY, Plaintiff, v. William G. KARNES et al., Defendants.

United States District Court, S. D. New York.

As Amended January 10, 1980.

Attorney(s) appearing for the Case

Levy & Levy, New York City, for plaintiff; Morris J. Levy, New York City, of counsel.

Lord, Day & Lord, New York City, for defendants; Michael J. Murphy, Stephen J. Crimmins, New York City, of counsel.

OPINION

GOETTEL, District Judge:

Plaintiff commenced this shareholders' derivative suit on April 6, 1977. The gravamen of the complaint was that the individual defendants (officers and directors of the company) had caused the Beatrice Foods Co. to give discounts to dairy customers in order to obtain their business. (Dairies are subject to regulation in some states with respect to wholesale prices.) As is customary in this type of litigation, these questionable...

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