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JACOBS v. PATENT ENFORCEMENT FUND, INC.

No. 99-9237.

230 F.3d 565 (2000)

Joseph J. JACOBS, Trustee of the Jacobs Family Trust of 10/13/80, Dennis P.A. Tobin, Dixon Frick Burden, Plaintiffs-Appellees, v. PATENT ENFORCEMENT FUND, INC., a Delaware Corp, Robert L. Hill, Fred Singer, Valutron, NV, a Netherlands Antilles Business Corp., Bonnybrook Charitable Trust, Joanne Labella, Defendants, David L. Hill, Harbor Research Corp., Defendants-Appellants.

United States Court of Appeals, Second Circuit. August Term, 2000.

Decided: September 27, 2000.

Attorney(s) appearing for the Case

Jay W. Eisenhofer, Grant and Eisenhofer, P.A., Wilmington, DE, for defendants-appellants.

Beverly S. Knapp, Shrader and Knapp, Westport, CT, and Steven M. Feder, Smith McCullough PC, Denver, CO, for plaintiffs-appellees.

Before: CALABRESI, and SOTOMAYOR, Circuit Judges, and TRAGER, District Judge.

CALABRESI, Circuit Judge:

I.

This appeal involves a shareholder derivative action brought by (among other plaintiffs) Carl Johnston, Dixon Burden, and Dennis Tobin ("plaintiffs"), in their capacities as shareholders of Patent Enforcement Fund, Inc. ("PEF"), to recover damages from Harbor Research Corporation ("HRC"). Plaintiffs alleged that through a series of fraudulent business transactions (mostly fraudulent loans) among PEF, HRC, a third business organization...

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