RUBIN v. POSNER

Civ. A. No. 87-378-JJF.

701 F.Supp. 1041 (1988)

Sadie RUBIN and Julie Stone, derivatively on Behalf of Pennsylvania Engineering Corporation, Plaintiffs, v. Victor POSNER, Ivan F. Boesky, and Drexel Burnham Lambert, Inc., Defendants, and Pennsylvania Engineering Corporation, Nominal Defendant.

United States District Court, D. Delaware.

December 21, 1988.


Attorney(s) appearing for the Case

David Berger (argued), Robert Frutkin (argued), and Marc H. Edelson, of Berger & Montague, Philadelphia, Pa., Jeffrey S. Goddess, of Saul, Ewing, Remick & Saul, Wilmington, Del., for plaintiffs.

Lawrence Blatte, of Rosen & Reade, New York City, Jesse A. Finkelstein (argued), Daniel A. Driesbach, and James C. Strum, of Richards, Layton & Finger, Wilmington, Del., for defendant Posner.

Philip D. Anker (argued), and Charles E. Davidon, of Wilmer, Cutler & Pickering, Washington, D.C., James F. Harker, of Herlihy & Wier, Wilmington, Del., for defendant Boesky.

Mathias E. Mone (argued), and David S. Smith, of Cahill, Gordon & Reindel, New York City, Robert K. Payson, of Potter, Anderson & Corroon, Wilmington, Del., for defendant Drexel Burnham Lambert.

Christopher Battaglia, of Biggs & Battaglia, Wilmington, Del., for defendant Pennsylvania Engineering.


OPINION

FARNAN, District Judge.

I. INTRODUCTION.

Defendants Victor Posner, Ivan F. Boesky, and Drexel Burnham Lambert, Inc. ("Drexel"), respectively, have filed motions to dismiss this shareholder's derivative action brought on behalf of Pennsylvania Engineering Corporation ("PEC") by plaintiffs Sadie Rubin and Julie Stone ("plaintiffs"). The complaint alleges (1) that Posner and Boesky violated § 10(b) of the Securities Exchange Act of 1934...

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