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LIPTON v. NEWS INTERN., PLC

514 A.2d 1075 (1986)

Barbara K. LIPTON and Michael Ceasar, Applicants for Intervention Below, Appellants, v. NEWS INTERNATIONAL, Plc, an English Company, Plaintiff Below, Appellee, v. WARNER COMMUNICATIONS, INC., a Delaware corporation, Steven J. Ross, Emanuel Gerard, David H. Horowitz, Deane F. Johnson, Bert W. Wasserman, Caesar P. Kimmel, Martin D. Payson, Ted Ashley, Allan B. Ecker, Chris-Craft Industries, Inc., a Delaware corporation, Herbert J. Siegel, and BHC, Inc., a Delaware corporation, Defendants Below, Appellees.

Supreme Court of Delaware.

Re-Submitted: May 13, 1986.

Decided: September 16, 1986.

Attorney(s) appearing for the Case

Joseph A. Rosenthal and Norman M. Monhait of Morris and Rosenthal, P.A., Wilmington, Stanley Nemser (argued), I. Stephen Rabin and Patricia I. Avery of Wolf Popper Ross Wolf & Jones, Bruce E. Gerstein and Scott W. Fisher of Garwin, Bronzaft & Gerstein, New York City, of counsel, and Stuart H. Savett and Barbara A. Podell of Kohn, Savett, Marion & Graf, P.C., Philadelphia, of counsel, for applicants for intervention below, appellants.

Martin P. Tully of Morris, Nichols, Arsht & Tunnell, Wilmington, Neal M. Goldman (argued) of Squadron, Ellenoff, Plesent & Lehrer, New York City, of counsel, for plaintiff below-appellee.

Rodman Ward, Jr. and Anthony W. Clark (argued) of Skadden, Arps, Slate, Meagher & Flom, Wilmington, for Warner Communications, Inc. and the Warner Director defendants, defendants below-appellees.

Charles S. Crompton, Jr. and James F. Burnett of Potter, Anderson & Corroon, Wilmington, for Chris-Craft Industries, Inc., BHC, Inc., and Herbert J. Siegel, defendants below-appellees.

Before McNEILLY, HORSEY and MOORE, JJ.

McNEILLY, Justice joined by HORSEY, Justice:

The case before us represents the efforts of two shareholders of Warner Communications, Inc. ("Warner") to vacate a stipulation of dismissal in an action against Warner by News International, plc ("News"), an English company controlled by K. Rupert Murdoch and formerly Warner's largest shareholder. The two shareholders ("Proposed Intervenors") contend that the action by News was derivative in nature, and that therefore...

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