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FOSSETT CORP. v. GEARHART

No. 88 C 3728.

694 F.Supp. 1325 (1988)

FOSSETT CORPORATION and Irwin Z. Zandman, Individually and on behalf of all others similarly situated, Plaintiffs, v. Marvin GEARHART, Thomas H. Law, Bob R. Dorsey, Henry Zenzie, Peter T. Flawn, and Terence E. McClary, Defendants.

United States District Court, N.D. Illinois, E.D.

September 19, 1988.

Attorney(s) appearing for the Case

Lowell E. Sachnoff, Steven H. Cohen, Joel N. Shapiro, Sachnoff, Weaver & Rubenstein, Ltd., Chicago, Ill., for plaintiffs.

Thomas P. Sullivan, Ronald L. Marmer, Howard S. Suskin, Jenner & Block, Chicago, Ill., Robert S. Travis, Stephen L. Tatum, Cantey & Hanger, Fort Worth, Tex., for defendants.

MEMORANDUM OPINION

BRIAN BARNETT DUFF, District Judge.

In 1984 Smith International, Inc. attempted to take over Gearhart Industries, Inc. ("GI"), a Fort Worth, Texas company. According to Fossett Corporation and Irwin Zandman, the plaintiffs in the action before this court, the directors of GI responded to Smith's attempt by entrenching themselves. Allegedly they did this by means of misrepresenting or failing to disclose material information in violation...

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