GROSSMAN v. JOHNSON

No. 81-1348.

674 F.2d 115 (1982)

Stanley M. GROSSMAN, Plaintiff-Appellant, v. Edward C. JOHNSON, 3rd, et al., Defendants-Appellees.

United States Court of Appeals, First Circuit.

Decided March 29, 1982.


Attorney(s) appearing for the Case

Richard M. Meyer, Washington, D. C., with whom Avram G. Hammer, Boston, Mass., and Milberg, Weiss, Bershad & Specthrie, New York City, were on brief, for appellant.

James S. Dittmar, Boston, Mass., with whom Berman, Dittmar & Engel, P. C., Boston, Mass., was on brief, for appellees Edward C. Johnson, 3d, et al.

E. Milton Farley, III, Richmond, Va., with whom Sumner H. Babcock, E. Susan Garsh, Bingham, Dana & Gould, Boston, Mass., John W. Riely, Joseph C. Kearfott and Hunton & Williams, Richmond, Va., were on brief, for appellees Dwight L. Allison, Jr., et al.

Jerome P. Facher, Boston, Mass., with whom Harry T. Daniels, James R. Gomes, Hale & Dorr, Peter M. Saparoff, and Gaston Snow & Ely Bartlett, Boston, Mass., were on brief, for appellee Fidelity Municipal Bond Fund, Inc.

Richard A. Kirby, Sp. Counsel, Washington, D. C., with whom Ralph C. Ferrara, Gen. Counsel, Paul Gonson, Sol., Edward F. Greene, Gen. Counsel, Jacob H. Stillman, Associate Gen. Counsel, Robert Mills and Louis C. Whitsett, Attys., Washington, D. C., were on briefs, for the Securities and Exchange Commission, amicus curiae.

Before CAMPBELL, and BOWNES, Circuit Judges, and DAVIS, Judge.


DAVIS, Judge.

Plaintiff-appellant Stanley M. Grossman brought this derivative action in the District Court for Massachusetts, under the Investment Company Act of 1940, as amended, 15 U.S.C. §§ 80a-1 et seq. (1976) (the Act).1 He is and has been a shareholder of Fidelity Municipal Bond Fund, Inc. ("the Fund"), a registered open-end investment company, and he sues the Fund's investment adviser, Fidelity Management &...

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