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NORMAN v. McKEE

Nos. 23489, 23548, 23582.

431 F.2d 769 (1970)

Lawrence and Elizabeth NORMAN, Plaintiffs-Appellees, v. R. L. McKEE et al., Defendants, R. L. McKee, E. R. Foley, Elwood Murphy, and Insurance & Securities Incorporated, Defendants-Appellants. Lawrence and Elizabeth NORMAN, Plaintiffs-Appellees, v. R. L. McKEE et al., Defendants, W. W. Weeth, W. H. Draper, Jr., and Pacific National Bank of San Francisco, Defendants-Appellants. Lawrence and Elizabeth NORMAN, Plaintiffs-Appellants, v. R. L. McKEE et al., Defendants-Appellees.

United States Court of Appeals, Ninth Circuit.

As Modified October 5, 1970.

Attorney(s) appearing for the Case

Moses Lasky (argued) of Brobeck, Phleger & Harrison, San Francisco, Cal., for appellants in No. 23489.

Brent M. Abel, Wm. W. Schwarzer, John R. Reese, of McCutchen, Doyle, Brown & Enersen, San Francisco, Cal., for appellants in No. 23548.

Kant & Gordon, Beverly Hills, Cal., Pomerantz, Levy, Haudek & Block, New York City, for appellants in No. 23582.

Alma M. Myers (argued) Berkeley, Cal., Patmont & Myers, LeRoy W. Rice (argued), Paul A. Renne of Cooley, Crowley, Gaither, Godward, Castro & Huddleson, San Francisco, Cal., Abraham Pomerantz (argued) of Pomerantz, Levy, Haudek & Block, New York City, for appellees.

Donald Feuerstein (argued) Asst. Gen. Counsel, Philip A. Loomis, Jr., Gen. Counsel, Walter P. North, Assoc. Gen. Counsel, Patricia H. Latham, Atty., Solomon Freedman, Director, Division of Corporate Regulation, Securities & Exchange Commission, Washington, D. C., amicus curiae.

Before BROWNING and HUFSTEDLER, Circuit Judges, and BATTIN, District Judge.

BATTIN, District Judge:

This is an action against Insurance Securities Trust Fund (hereinafter the Fund), its directors and officers, its trustee, Pacific National Bank, and its underwriter and manager, Insurance and Securities Incorporated (hereinafter ISI). Plaintiffs have been investors in the Fund since 1963. They bring the action derivatively on behalf of the Fund and representatively on behalf of all other investors. The Fund has approximately 175,000 investors...

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