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SCHOENBAUM v. FIRSTBROOK

No. 160, Docket 31408.

405 F.2d 200 (1968)

David H. SCHOENBAUM, Plaintiff-Appellant, v. Bradshaw D. FIRSTBROOK et al., Defendants, and Harold W. Manley, Louis Pradal, John C. Rudolph, Donald K. Russell, Aquitaine Company of Canada, Ltd. and Paribas Corporation of New York, Defendants-Appellees.

United States Court of Appeals Second Circuit.

Decided May 29, 1968.

Attorney(s) appearing for the Case

Sidney B. Silverman, New York City, for plaintiff-appellant.

Whitney North Seymour, Jr., New York City (Simpson, Thacher & Bartlett and John C. Diller, New York City, on the brief), for defendants Harold W. Manley, John C. Rudolph and Donald K. Russell.

Michael M. Maney, New York City (Sullivan & Cromwell and Marvin Schwartz, New York City, on the brief), for defendants Aquitaine Co. of Canada, Ltd. and Louis Pradal.

David Hartfield, Jr., New York City (White & Case, Thomas A. Butler and Paul J. Bschorr, New York City, on the brief), for defendant Paribas Corporation.

Before LUMBARD, Chief Judge, and MEDINA and HAYS, Circuit Judges.

LUMBARD, Chief Judge:

Plaintiff, an American shareholder of Banff Oil Ltd., a Canadian corporation, brought this shareholder derivative action to recover under Section 10(b) of the Securities Exchange Act of 1934, 15 U.S.C. 78j(b) and Rule 10b-5, 17 CFR § 240.10b-5 (1967), for damages to the corporation resulting from the sales, in Canada, of Banff treasury stock to defendants Aquitaine of Canada, Ltd., and Paribas Corporation. Plaintiff alleged that the defendant...

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