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OCILLA INDUSTRIES, INC. v. KATZ

No. CV-87-2676.

677 F.Supp. 1291 (1987)

OCILLA INDUSTRIES, INC., Plaintiff, v. Howard R. KATZ, Joseph M. Esposito, Jr., William G. Gassman, E. James Van Buskirk, Lawrence S. Zimmerman, and Direct Action Marketing, Inc., Defendants.

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

November 2, 1987.

Attorney(s) appearing for the Case

Leland G. Cook, Smith, Gambrell & Russell, Atlanta, Ga., Steven M. Nachman, Webster & Sheffield, New York City, for plaintiff.

Vaughn C. Williams, Skadden, Arps, Slate, Meagher & Flom, New York City, for Howard R. Katz, Joseph Esposito, Jr., E. James Van Buskirk, Lawrence S. Zimmerman, and Direct Action Marketing, Inc.

David N. Brainin, Locker, Greenberg & Brainin, New York City, for William Gassman.

Robert A. Jaffee, Burnham, Connolly, Oesterle & Henry, Washington, D.C., Thomas R. Lynch, Lynch, Rowin, Burnbaum & Crystal, P.C., New York City for counterclaimant Elijah Waldron.

David Parker, Kraver & Parker, New York City, for Howard R. Katz.

James C. McMillin, Werbel, Grossman & McMillin, New York City, for defendant John Simon.

MEMORANDUM AND ORDER

RAGGI, District Judge.

Plaintiff, Ocilla Industries, Inc. ("Ocilla"), a 40% shareholder in defendant Direct Action Marketing, Inc. ("Direct Action"), sues that company and the five members of its Board of Directors derivatively for corporate waste and breach of fiduciary duties to the company's shareholders. In pursuit of the action, Ocilla moves for a preliminary injunction that would bar certain of the individual defendants from exercising...

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