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TANNENBAUM v. ZELLER

No. 576, Docket 75-7503.

552 F.2d 402 (1977)

Susan TANNENBAUM, Plaintiff-Appellant, v. Robert G. ZELLER et al., Defendants-Appellees.

United States Court of Appeals, Second Circuit.

Finally Submitted May 20, 1976.

Decided March 4, 1977.

Attorney(s) appearing for the Case

Leonard I. Schreiber, New York City (Abraham J. Brill, New York City, of counsel), for Susan Tannenbaum.

Marvin Schwartz, New York City (Mark I. Fishman and Sullivan & Cromwell, New York City, of counsel), for F. Eberstadt & Co., Inc., F. Eberstadt & Co., Managers and Distributors, Inc., and Robert G. Zeller.

Robert D. Mercurio, New York City (E. Roger Frisch, and Walsh & Frisch, New York City, of counsel), for Chemical Fund, Inc.

Harvey L. Pitt, Gen. Counsel, Paul Gonson, Associate Gen. Counsel, Jacob H. Stillman, Asst. Gen. Counsel, Edward A. Scallet, Atty., SEC, Washington, D. C., for Securities and Exchange Commission, amicus curiae.*

Before LUMBARD and TIMBERS, Circuit Judges, and BRYAN, District Judge.

FREDERICK van PELT BRYAN, District Judge:

The plaintiff in this derivative action is a shareholder of Chemical Fund Inc., a mutual fund (the Fund). She sued on behalf of the Fund against the Fund's investment adviser, F. Eberstadt & Co., Managers and Distributors, Inc., its parent company, F. Eberstadt & Co., Inc., and Robert G. Zeller, a principal of the Fund, its investment adviser, and the parent company, for alleged unlawful failure to recapture portfolio...

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