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R.D. SMITH & CO., INC. v. PREWAY INC.

No. 86-C-641-C.

644 F.Supp. 868 (1986)

R.D. SMITH & COMPANY, INC., Randall D. Smith, Sega Associates, L.P., and Randall D. Smith as trustee of the R.D. Smith & Company, Inc. Retirement Plan, Plaintiffs, v. PREWAY INC., James W. Egan, Wallace H. Dunbar, Francis G. Walker, Tom S. Ellis, Richard E. Johnson, D. Barry Reardon, Lawrence H. Boling, Harold E. Clark, Jr., and William Thomas, Jr., Defendants.

United States District Court, W.D. Wisconsin.

September 26, 1986.

Attorney(s) appearing for the Case

Donald K. Schott and Jeffrey B. Bartell, Quarles & Brady, Madison, Wis., for plaintiffs.

Richard Ninneman, Whyte & Hirschboeck, Milwaukee, Wis., for defendants.

ORDER

CRABB, Chief Judge.

This diversity action is before the court on the plaintiffs' motion for a preliminary injunction of both an offer made by defendant Preway, Inc. to exchange non-convertible debentures for new notes and a shareholder rights plan (referred to by plaintiffs as a "poison pill plan") adopted by Preway. Plaintiffs contend that the directors of Preway breached their fiduciary duties to the company's shareholders by adopting the debenture...

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