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U. S. INDUSTRIES, INC. v. ANDERSON

No. 78-1271.

579 F.2d 1227 (1978)

U. S. INDUSTRIES, INC. and Health Industries, Inc., Petitioners, v. The Honorable Aldon J. ANDERSON, United States District Judge, Respondent.

United States Court of Appeals, Tenth Circuit.

Decided July 13, 1978.

Attorney(s) appearing for the Case

C. Keith Rooker and Dale A. Kimball of Martineau & Maak, Salt Lake City, Utah, for petitioners.

James P. Cowley and Allan T. Brinkerhoff of Watkiss & Campbell and Richard W. Giauque and Patricia W. Christensen of Berman & Giauque, Salt Lake City, Utah, for respondents.

Before SETH, Chief Judge, and McKAY and LOGAN, Circuit Judges.

McKAY, Circuit Judge.

In 1969, Robert L. Rice and Kenneth O. Melby, along with others, sold 80 percent of the stock of Health Industries, Inc. to U. S. Industries, Inc. and in exchange received shares of U. S. Industries Series O special preference stock. Subsequently, U. S. Industries and Health Industries (plaintiffs) brought an action in federal district court against Rice and Melby (defendants) and others for securities violations and for various breaches of employment...

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