WELLS v. SHEARSON LEHMAN


72 N.Y.2d 11 (1988)

Rosalind S. Wells, Respondent, v. Shearson Lehman/American Express, Inc., et al., Appellants.

Court of Appeals of the State of New York.

Decided June 7, 1988.


Attorney(s) appearing for the Case

Leon P. Gold, Mark E. Davidson and Clifford Thau for appellants.

Sidney B. Silverman, Joan T. Harnes, Harold B. Obstfeld and Nancy A. Lester for respondent.

Judges SIMONS, ALEXANDER, TITONE and HANCOCK, JR., concur with Judge KAYE; Judge BELLACOSA dissents and votes to affirm in a separate opinion; Chief Judge WACHTLER taking no part.


KAYE, J.

An action against financial advisors who rendered opinions on the financial fairness to shareholders of a proposed leveraged buyout is barred by a release in settlement of a prior Delaware class action challenging the buyout. While the financial advisors were not parties to the Delaware class action, we conclude that, applying the law of Delaware or the law of New York, the release discharging the named...

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