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MUELLER v. KORHOLZ

No. 18053.

449 F.2d 82 (1971)

Paul MUELLER and Gabriel Wolff, Plaintiffs-Appellants, v. Herbert F. KORHOLZ et al., Defendants-Appellees.

United States Court of Appeals, Seventh Circuit.

September 21, 1971.

Attorney(s) appearing for the Case

A. Bradley Eben, Arthur T. Susman, Chicago, Ill., for plaintiff-appellant, Gabriel Wolff; Orlikoff, Prins, Flamm & Susman, Chicago, Ill., of counsel.

Robert O. Mansell, Chicago, Ill., Charles S. Rhyne, Courts Oulahan, Robert H. Culp, Rhyne & Rhyne, Washington, D. C., Quinn, Jacobs, Barry & Foster, Chicago, Ill., for defendants-appellees.

Before KILEY, FAIRCHILD and STEVENS, Circuit Judges.

STEVENS, Circuit Judge.

Plaintiff-appellant, a shareholder of Susquehanna Corporation, contends that the second and third steps of a three-step transaction produced a "short-swing" profit for defendant Korholz, a Susquehanna director, which is recoverable on behalf of Susquehanna pursuant to § 16(b) of the Securities Exchange Act of 1934, 15 U.S.C. § 78p(b). Defendants contend that the second step was not a "sale" within the meaning of the Act and, in any...

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