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MALDONADO v. FLYNN

No. 136, Docket 78-7241.

597 F.2d 789 (1979)

William MALDONADO, Plaintiff-Appellant, v. William H. FLYNN, Sam Israel, Jr., A. G. Gueymard, J. B. Harrison, Ronald C. Lassiter, B. J. Mackin, Michael R. Naess, Eugene F. Shiels, Robert B. Wall and Zapata Corporation, Defendants-Appellees.

United States Court of Appeals, Second Circuit.

Decided March 15, 1979.

As Amended March 22 and April 16, 1979.

Attorney(s) appearing for the Case

Sidney L. Garwin, New York City (Bertram Bronzaft, Bruce E. Gerstein, New York City, of counsel), for plaintiff-appellant.

Guy C. Quinlan, New York City (William R. Glendon, Andrew M. Low, Rogers & Wells, New York City, of counsel), for defendants-appellees William H. Flynn, Sam Israel, Jr., A. G. Gueymard, J. B. Harrison, Ronald C. Lassiter, B. J. Mackin, Michael R. Naess, Eugene F. Shiels, and Robert B. Wall.

Before KAUFMAN, Chief Judge, and MANSFIELD and MESKILL, Circuit Judges.

MANSFIELD, Circuit Judge:

In this stockholders' derivative suit on behalf of Zapata Corporation ("Zapata" or "the Corporation"), a Delaware corporation, against a group of its past and present directors, the complaint alleges that the defendants violated various provisions of the Securities and Exchange Act of 1934, 15 U.S.C. §§ 78a, et seq. ("the Act") and applicable "common law" in their administration of the Corporation's stock option plan for...

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