KENNEDY, J., delivered the opinion of the court, in which WOOD, J., joined. BOGGS, J. (pp. 1257-61), delivered a separate dissenting opinion.
KENNEDY, Circuit Judge.
In this diversity action alleging securities fraud, in violation of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, 15 U.S.C. § 78j(b)(1982); 17 C.F.R. § 240.10b-5 (1988), actual fraud, and constructive fraud, plaintiffs, Robert M. Rubin and...
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