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BERNSTEIN v. KENNELLY

No. 25330.

433 F.2d 10 (1970)

Diana BERNSTEIN, Plaintiff-Appellant, v. William F. KENNELLY, Robert M. Thorpe, Burton S. Robbins, Edward S. Campbell, Richard E. Fuller, Charles C. Newton, Defendants, and Heath Tecna Corporation, Appellee.

United States Court of Appeals, Ninth Circuit.

Rehearing Denied November 23, 1970.

Attorney(s) appearing for the Case

Sidney L. Garwin (argued) New York City, Arthur S. Langlie, of Langlie & Praeger, Seattle, Wash., for appellant.

Douglas Shaw Palmer of Davis, Wright, Toodd, Reise & Jones, Seattle, Wash., for defendants.

Gerald Hahn (argued) of Oseran & Hahn, Kent, Wash., for appellee.

Before HAMLEY and WRIGHT, Circuit Judges, and GOODWIN, District Judge.

PER CURIAM:

This is a stockholders' derivative action brought on behalf of Heath Tecna Corporation, to recover profits made by six of its officers in "insider" stock transactions in violation of section 16 (b) of the Securities Exchange Act of 1934, 15 U.S.C. § 78p(b). Five of the defendants agreed to pay back their profits, aggregating three hundred thousand dollars, if the sixth officer, Burton Robbins, who denied liability, was held liable.

Thereafter...

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