NORMAN v. McKEE

No. 45079.

290 F.Supp. 29 (1968)

Lawrence NORMAN and Elisabeth Norman, Plaintiffs, v. R. L. McKEE et al., Defendants.

United States District Court N. D. California.

July 29, 1968.


Attorney(s) appearing for the Case

Harold S. Kant, Beverly Hills, Cal. (Kant & Gordon, Beverly Hills, Cal., on the brief), and Abraham L. Pomerantz and Richard M. Meyer, New York City (Pomerantz, Levy, Haudek & Block, New York City, on the brief), for plaintiffs.

Moses Lasky and Charles B. Cohler, San Francisco, Cal. (Brobeck, Phleger & Harrison, San Francisco, Cal., on the brief), for defendants Insurance & Securities Incorporated, R. L. McKee, E. R. Foley and Elwood Murphey.

Paul A. Renne, San Francisco, Cal. (Cooley, Crowley, Gaither, Godward, Castro & Huddleson, San Francisco, Cal.), for defendants Pacific National Bank of San Francisco, California, W. H. Draper, Jr., and Waldo W. Weeth.

Alma M. Myers, Berkeley, Cal., for objectors Alma M. Myers and Myrtle G. Cromwell, as executrices of the will of Ethel I. Bumbaugh, deceased.

LeRoy W. Rice, San Francisco, Cal., on behalf of objector Paul E. Geerlings and Donald M. Feuerstein, Special Counsel, Securities and Exchange Commission, Washington, D. C. (Philip A. Loomis, Jr., Gen. Counsel, Walter P. North, Associate Gen. Counsel, Solomon Freedman, Director, Division of Corporate Regulation, and Robert C. Hacker, Atty., Division of Corporate Regulation, Securities and Exchange Commission, Washington, D. C., on the brief), for amicus curiae Securities and Exchange Commission.


MEMORANDUM OF DECISION

SWEIGERT, District Judge.

This suit was commenced on May 9, 1966, by the named plaintiffs, Lawrence Norman and Elisabeth Norman, his wife, as investors since 1963 in Insurance Securities Trust Fund against the Fund (which has approximately 175,000 investors); its directors and officers, its Trustee, Pacific National Bank, and its underwriter and manager, Insurance Securities Incorporated (hereinafter referred to as ISI) derivatively...

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