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COOKIES FOOD PRODUCTS v. LAKES WAREHOUSE

No. 86-1825.

430 N.W.2d 447 (1988)

COOKIES FOOD PRODUCTS, INC., an Iowa corporation, by its stockholders Leo ROWEDDER, Alvin Claussen, Sandra C. Grote, Mark Cook, Dave Tiefenthaler, Virtus Pittman, Loren Rowedder, Richard Bloom, Daryl Johnson, Charles Brotherton, Howard Brotherton, Jeryl Reiter, and Gilbert Renze, Appellants, v. LAKES WAREHOUSE DISTRIBUTING, INC., an Iowa corporation, Speed's Automotive, Inc., an Iowa Corporation, and Duane D. Herrig, Appellees.

Supreme Court of Iowa.

Rehearing Denied November 18, 1988.

Attorney(s) appearing for the Case

Colin J. McCullough and David P. Jennett of McCullough Law Firm, Sac City, for appellants.

James R. Van Dyke of Van Dyke & Werden, P.C., Carroll, for appellees.

Considered by HARRIS, P.J., and SCHULTZ, NEUMAN, SNELL, and ANDREASEN, JJ.

NEUMAN, Justice.

This is a shareholders' derivative suit brought by the minority shareholders of a closely held Iowa corporation specializing in barbeque sauce, Cookies Food Products, Inc. (Cookies). The target of the lawsuit is the majority shareholder, Duane "Speed" Herrig and two of his family-owned corporations, Lakes Warehouse Distributing, Inc. (Lakes) and Speed's Automotive Co., Inc. (Speed's). Plaintiffs alleged that Herrig, by acquiring control of Cookies...

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