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SEIGAL v. MERRICK

Nos. 141, 235, Dockets 77-7566, 77-7576.

590 F.2d 35 (1978)

David SEIGAL and Ethel Seigal, Plaintiffs-Appellants, v. David MERRICK, Defendant, and William T. Gossett, William R. Hearst, Jr., Warren Hellman, H. Blackmer Johnson, John H. Johnson, William C. Keefe, Ralph F. Lewis, Malcolm A. MacIntyre, Harry McIntyre, John T. Pollock, Dennis C. Stanfill, Gordon Stulberg, Gerald Trautman, John L. Vogelstein, Defendants-Appellants, and Twentieth Century-Fox Film Corporation, Defendant, and Muriel Koby, George Rosen and Sandra Sachs, Intervenors-Objectors-Appellees. Harry GEHLER, Plaintiff-Appellant, v. William R. HEARST, Jr., H. Blackmer Johnson, John J. Johnson, William C. Keefe, Malcolm A. MacIntyre, John T. Pollock, Ralph Lewis, Dennis C. Stanfill, Gordon Stulberg, Gerald A. Trautman, William T. Gossett, Defendants-Appellants, and David Merrick, Defendant, and Twentieth Century-Fox Film Corporation, Defendant, and Muriel Koby, George Rosen and Sandra Sachs, Intervenors-Objectors-Appellees.

United States Court of Appeals, Second Circuit.

Decided December 14, 1978.

Attorney(s) appearing for the Case

Edwin E. McAmis and Peggy L. Kerr, New York City (Samuel Kadet, Skadden, Arps, Slate, Meagher & Flom, New York City, of counsel), for defendants-appellants.

Martin R. Gold, New York City (Gold, Farrell & Marks, New York City, of counsel), for plaintiffs-appellants.

Norman Annenberg, New York City, for intervenors-objectors-appellees.

Kaufman, Taylor, Kimmel & Miller, New York City (Stanley L. Kaufman, Irving Malchman and Roger W. Kirby, New York City, of counsel), for amicus Stockholders Louis Weiss and Eileen Weiss.

Before LUMBARD, MOORE and GURFEIN, Circuit Judges.

GURFEIN, Circuit Judge:

Both the plaintiffs and the defendant-directors in two stockholder derivative actions brought on behalf of Twentieth Century-Fox Film Corp. ("Fox") appeal from an order of the District Court (Hon. Constance Baker Motley, Judge) refusing approval of a stipulation of settlement under F.R.Civ.P. 23.1. The settlement that was disapproved by Judge Motley involved the granting of options, which were restricted in certain ways, to defendant...

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