ROSENGARTEN v. INTERN. TEL. & TEL. CORP.

Nos. 76 Civ. 1249, 76 Civ. 1271, 76 Civ. 4608 and 76 Civ. 5539.

466 F.Supp. 817 (1979)

Martin ROSENGARTEN, Plaintiff, v. INTERNATIONAL TELEPHONE & TELEGRAPH CORP., Francis J. Dunleavy, Lyman C. Hamilton, Jr., Harold S. Geneen, Richard E. Bennett, Eugene R. Black, Raymond L. Brittenham, George R. Brown, Pomeroy Day, Alvin E. Friedman, J. Patrick Lannan, James V. Lester, John A. McCone, Richard S. Perkins, Felix G. Rohatyn, and Herbert B. Schoen, Defendants. Louis W. GOODKIND, Plaintiff, v. Harold S. GENEEN, Francis J. Dunleavy, John J. Navin, Lyman C. Hamilton, Jr., Richard E. Bennett, Eugene R. Black, Raymond L. Brittenham, George R. Brown, Pomeroy Day, W. Elfers, Alvin E. Friedman, Herbert C. Knortz, J. Patrick Lannan, James V. Lester, John A. McCone, Richard S. Perkins, Felix G. Rohatyn, H. P. Schoen, Ted B. Westfall and International Telephone & Telegraph Corp., Defendants. Mitchell A. KRAMER, Plaintiff, v. INTERNATIONAL TELEPHONE AND TELEGRAPH CORPORATION, Herbert C. Knortz, Harold S. Geneen and Arthur Andersen & Co., Defendants. Elise MESH, Plaintiff, v. Richard E. BENNETT, Eugene R. Black, Raymond L. Brittenham, Anthony J. Bryan, Pomeroy Day, Francis J. Dunleavy, William Elfers, Alvin E. Friedman, Harold S. Geneen, Frederic C. Hamilton, Lyman C. Hamilton, Jr., Herbert C. Knortz, J. Patrick Lannan, James V. Lester, John A. McCone, Richard S. Perkins, Felix G. Rohatyn, Herbert P. Schoen, International Telephone and Telegraph Corporation, and "John Doe", "Richard Roe" and other "John Does", said names being fictitious, their true names being presently unknown to plaintiff, the parties intended being present and former officers and employees of International Telephone and Telegraph Corporation and its subsidiaries who participated in its Career Executive Incentive Stock Purchase Plan, Defendants.

United States District Court, S. D. New York.

As Corrected March 5 and 13, 1979.

As Corrected April 12, 1979.


Attorney(s) appearing for the Case

Shatzkin, Cooper, Labaton, Rudoff & Bandler, New York City, for plaintiff Martin Rosengarten.

Kass, Goodkind, Wechsler & Gerstein, New York City, for plaintiff Louis W. Goodkind.

Mesirov, Gelman, Jaffe, Cramer & Jamieson, Philadelphia, Pa., for plaintiff Mitchell A. Kramer.

Levy & Levy, New York City, for plaintiff Elise Mesh.

Wormser, Kiely, Alessandroni & McCann, New York City, for defendant Intern. Tel. & Tel. Corp.

Davis, Polk & Wardwell, New York City, for defendants Geneen et al.

Paul, Weiss, Rifkind, Wharton & Garrison, New York City, Wilson & McIlvaine, Chicago, Ill., for defendant Arthur Andersen & Co.


LASKER, District Judge.

These four derivative actions, brought by minority stockholders of the International Telephone and Telegraph Corporation (ITT), allege violations of the Securities Exchange Act of 1934, 15 U.S.C. §§ 78a-78kk, breach of fiduciary duty, waste and common law fraud, arising out of "questionable payments"1 made by employees of ITT, at home and abroad, between 1971 and 1975.2

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