IN RE TENNECO SECURITIES LITIGATION

Civ. A. No. 76-H-354 (MDL No. 253).

449 F.Supp. 528 (1978)

In re TENNECO SECURITIES LITIGATION.

United States District Court, S. D. Texas, Houston Division.

April 28, 1978.


Attorney(s) appearing for the Case

Sidney Ravkind, Mandell & Wright, Houston, Tex., for plaintiffs.

Richard B. Miller, Houston, Tex., for defendants, W. E. Scott, E. L. Capps, Simon Askin, B. F. Biaggini, Henry U. Harris, Jr., Thomas Hancock, Newton K. Hoverstock, B. John Mackin, S. F. Allison, G. H. Meason, William M. Carpenter, E. W. Hopkins, Kenneth W. Reese, M. H. Covey, John P. Diesel, and Allen T. McInnes and Richard A. Brooks; Baker & Boots, Houston, Tex., of counsel.

Preston Shirley, Galveston, Tex., for defendants, Tenneco Inc., Midwestern Gas Transmission Co., Tenneco Oil Co., Newport News Shipbuilding & Dry Dock Co., Tenneco West, Inc., Heggeblade-Marguleas-Tenneco, Inc., and Stockdale Development Corp.; Mills, Shirley, McMicken & Eckel, Galveston, Tex., of counsel.

Joe H. Reynolds, Houston, Tex., for defendant N. W. Freeman; Reynolds, Allen & Cook, Houston, Tex., of counsel.

John L. McConn, Jr., Houston, Tex., for defendant Herbert Allen; Butler, Binion, Rice, Cook & Knapp, Houston, Tex., of counsel.

John C. Snodgrass, Houston, Tex., for defendants J. L. Ketelsen and Sydney T. Ellis; Vinson, Elkins, Searls, Connally & Smith, Houston, Tex., of counsel.

David R. Hyde, New York City, for defendants, N. W. Freeman, Wilton E. Scott, Simon Askin, Henry U. Harris, Jr., B. F. Biaggini, Thomas Hancock, B. John Mackin, and Newton K. Hoverstock; Cahill, Gordon & Reindel, New York City, of counsel.

Edward E. Rigney, New York City, for defendant Tenneco, Inc.; Alexander & Green, New York City, of counsel.

Edward J. Ross, Breed, Abbott & Morgan, New York City, for defendant Arthur Andersen & Co.

Donald J. Mulvihill, Washington, D.C., for defendants Simon Askin, N. W. Freeman, Newton K. Hoverstock, B. John Mackin, W. E. Scott, B. F. Biaggini, Thomas Hancock, Henry U. Harris, S. F. Allison, G. H. Meason, William M. Carpenter, Edward J. Harrison, E. W. Hopkins, Christopher Wilson, H. Malcolm Lovett, and W. D. P. Carey (Deceased), Irvin M. Shlenker (Deceased), Gardiner Simonds (Deceased) and Earl Rudder (Deceased); Cahill, Gordon & Reindel, Washington, D.C., of counsel.

Robert K. Payson, Wilmington, Del., for defendants Tenneco, Inc., Midwestern Gas Transmission Co., Tenneco Oil Co., Newport News Shipbuilding & Dry Dock Co., Tenneco West, Inc., Heggblade-Marguleas-Tenneco, Inc., and Stockdale Development Corp.; Potter, Anderson & Corroon, Wilmington, Del., of counsel.

Richard J. Abrams, Wilmington, Del., for defendants N. W. Freeman, S. Askin, B. F. Biaggini, T. Hancock, H. U. Harris, Jr., N. K. Hoverstock, B. J. Mackin, and W. E. Scott; Richards, Layton & Finger, Wilmington, Del., of counsel.

Michael L. Denger, Washington, D.C., for defendant, Tenneco, Inc.; Sutherland, Asbill & Brennan, Washington, D.C., of counsel.

Kass, Goodkind, Wechsler & Gerstein, New York City, Morris & Rosenthal, Wilmington, Del., for plaintiffs Ralph Limmer and Herbert Sadowsky as Trustees of the United Welfare Fund.

Abraham I. Markowitz, New York City, for plaintiff, Harry Lewis.

Ben H. Schleider, Dillingham, Schleider & Masquelette, Schleider & Ewing, Houston, Tex., Dean Carlton, Dallas, Tex., for plaintiff Lowell G. Raun.

Leonard, Cohen & Gettings, Washington, D.C., and Arlington, Va., Schramm, Raddue & Seed, Washington, D.C., and Santa Barbara, Cal., for plaintiff Alice Tweed Tuohy Foundation.

Gary J. Near, San Francisco, Cal., Ron D. Daugherty, Houston, Tex., for plaintiff Thomas J. Anderson.

Gene Mesh, Cincinnati, Ohio, for plaintiff Madeline Mildred Milberg.

Henry M. Rosenblum, Houston, Tex., for plaintiffs Mildred Milberg and Thomas J. Anderson.

Lloyd R. Cunningham, Jr., Houston, Tex., for N. W. Freeman, John M. Robertson, and George Perrine.

Harvey B. Cohen, Daniel A. Reicker, Washington, D.C., for Alice Tweed Tuohy Foundation, plaintiff.

Jerry G. Hill, Hill & Ghiselli, Houston, Tex., for C. W. Rackley.


Memorandum and Order

SINGLETON, District Judge.

This lawsuit is brought individually and derivatively on behalf of Tenneco, Inc. by plaintiff shareholders against the defendants Tenneco, Inc., its officers, directors, and subsidiaries pursuant to Sections 14(a) and 10(b) of the Securities Exchange Act of 1934, 15 U.S.C. § 78n(a) and § 78j(b).

Plaintiffs allege that between 1970 and 1975 the defendant officers and directors used corporate...

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