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CATTON v. DEFENSE TECHNOLOGY SYSTEMS, INC.

No. 05 Civ. 6954(SAS).

457 F.Supp.2d 374 (2006)

Harry CATTON, Phillip Marks, Steven Kevelson, John Scotto, Erik Kahn, Robert Wissenbach, and John Does 1-10, Plaintiffs, v. DEFENSE TECHNOLOGY SYSTEMS, INC., John Brady, Edward McPhee, Daniel McPhee, and Phillip Rausch, Defendants.

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

June 20, 2006.

Attorney(s) appearing for the Case

Richard S. Ciacci, Todtman, Nachamie, Spizz & Johns, P.C., New York City, for plaintiffs.

Eric S. Hutner, Hutner Klarish, L.L.P., New York City, for defendants.

OPINION AND ORDER

SCHEINDLIN, District Judge.

I. INTRODUCTION

Plaintiffs bring this case on behalf of certain purchasers of common stock in Defense Technology Systems, Inc. ("the Company"). The gravamen of plaintiffs' allegations is that the Company was an "empty shell," with no employees, infrastructure, product, or services. Defendants allegedly manipulated the price of the Company's stock and fraudulently induced plaintiffs to purchase...

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