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SCHEIN v. CHASEN

Nos. 81, 82, Dockets 72-1373, 72-1375.

519 F.2d 453 (1975)

Jacob SCHEIN and Marvin H. Schein, Plaintiffs-Appellants, v. Melvin CHASEN et al., Defendants-Appellees. Antone F. GREGORIO, Plaintiff-Appellant, v. LUM'S, INC., et al., Defendants-Appellees.

United States Court of Appeals, Second Circuit.

Decided May 2, 1975.

Attorney(s) appearing for the Case

Wolf, Popper, Ross, Wolf & Jones, New York City (Donald N. Ruby, New York City, of counsel), for plaintiffs-appellants.

Simpson, Thacher & Bartlett, New York City (James J. Hagan, New York City, of counsel), for defendants-appellees.

Before KAUFMAN, Chief Judge, and WATERMAN and SMITH, Circuit Judges.

PER CURIAM:

This case returns to us after an extraordinary journey. In Schein v. Chasen, 478 F.2d 817 (2d Cir.1973), we reversed the judgment of the trial court dismissing plaintiffs' shareholder derivative suit. (Kaufman, C. J., dissenting). The majority concluded, under Florida law, that investors who sell stock on the basis of inside information provided by a stockbroker—who in turn received the information from the...

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