USELTON v. COMMERCIAL LOVELACE MOTOR FREIGHT, INC.

Nos. 88-1253, 88-1750.

940 F.2d 564 (1991)

William T. USELTON; W.D. Hupp; C.J. Dowling; Kenneth Miles; G.D. Jeffcoat; Jack Wilson; K.D. Witt; Paula Rosa; Johnny S. Hunt; James A. Mason; Robert E. Stuart; Jerry Don Casey; Maurice Uhrmacher; Loyd A. Duncan; Vernon Jordan; Hubert D. Williamson; J.W. Haris; D.L. Haralson; Harvey Leo Hess; Wood G. Ishmael; Harold W. Summers; Charles E. Stockton; Joe C. Gray; Earl G. Jackson; E.L. Whilhock; Melvin Carpenter; Robert T. Keener; Troy G. Carson; Jack L. Blankinship; Carl L. Davidson; J.F. Maxwell; Paul M. Warren; Jay W. Harned; E.H. Coulter; Earl E. White; Cleo C. McDaniel; Bobby F. Stansbury; Bill J. Anderson; Daniel A. Denny; Carl Lee Wilson; Leroy Barrett; James E. Lee; Donald L. Butler; L.W. Gonzales; Daisy "Maurene" Davis; Keith W. Braul; Jerry L. Edgemon; Gilbert L. Robles; Loyd E. Courtney; Hollis M. Mauldin; Johnny L. Johnson; Carmel M. Doern; Tom Thelkekd; T.L. Jones; Kenneth W. Hays; Jackie Jones; William Donley; Howard L. Mitchell; Earl D. Denton; Stanley R. Gomes; Jack P. Rowland; K.L. Billingsley; Earl L. Woffard; D. Td. Frizell; H.W. Richardson; Donald Kendrix; Betty Cox; James M. Woodward; Frank Donald R. Winter; Jack Yarbrough; Finis M. Yocum; Tommy L. Kirkland; John A. Moyshen; Harold Allison; Marion McClelland; Leslie R. Walcher; Lloyd Fortune, Sr.; B.C. Evans; Raymond B. Horn; Leeha McCormick; Pete Wolf; Leon Hancock; William Anderson; Robert G. Porter; Eldon W. Bishop; E.B. Copeland; D.K. Hanshue; E.G. Dedmon; Leslie R. Walcher; Carl L. Holman; Kenneth W. Jackson; Joel Robinson; Charles Pemberton; Bruce O. Smith; T.D. Jack; James T. Johnson; Willie G. Loudermilk; Raymond Horn; George C. Tsoodle; Gerold L. Goad; B.J. Burrell; D.Y. Qualine; Frances M. McKye; Alonzo Anderson; Hoarce E. Reeves; Betty Moore; Billy R. Jenkins; Jerry A. Warren; C.J. Womack; Johnny Ballard; Kelley Ruminer; Deborah Yandell; Robert Ferguson; Claudie C. Weaver; John O. Stanley; William R. Bricker; Elen H. Spiva; Phillip Horne; Earl V. Griffin; Anna M. Burkett; James E. Neal; James McCampbell; Valorie Booker; J.W. Rackley; Ronnie J. Steward; Clarence Burns; John L. Knapp; Ramon L. Wolfe; W.A. Smith; Alan Prudhome; James E. Thompson; Henry S. Baxter; Patsy R. Brock; Larry Joe Stafford; Daniel Looney; Byron A. Bouchelle; Carl F. Davis; Jerry I. Poindexter; Lee Roy Houston; Clinton H. Reynolds; Nib E. Hill; David R. Hines; C.G. Olson; Cleophos Frost; Bobby G. Decker; James Long; Lorita A. Goya; Wayne T. Wells; Gerald A. Luton; Harold Shea; Johnnie T. Henson, Jr.; Opal Lee Broussard; Homer Kimble; Jerry Nohnager; Judy A. Rogers; Ilona Garrison; Edward A. King; Alyce L. King; Evert L. Carroll; Ben H. Marshall; Shirley J. Lamb; John William Edwards; Maurice Cannon; Leroy Phelps; J.D. Burkhalter; Rickki L. Barnes; Bob J. Sharber; William D. Sandell; William E. Shockley; Don Cutler; Nancy A. Bomhoff; Vaughn Bryant; Warren Rex Chapin; Herman L. Klaus; Willie L. Wixom; Billy O. Hawkins; Jack D. Edwards; Rita Henry; Carl Holiday; Douglas Messel; Diane J. Trigg; Tommy A. Howard; Norvell Lancaster; Bobby Bowling; P.J. Warren; Robert C. Anderson; Doyle C. Adams; Glenn D. Christians; Willard Terry; Bill Stewart; Jimmy King; Richard Borne; Johnny Warmoth; Franklin A. Nieley; Charles Norton; Glen Layton; Leo Thompson; D.L. Loman; Marland Glover; Bobby Bennett; Jerry Chronister; Lawrence White; Donald Fitz; Odis Ward; Donald T. Kendrix; Ruel L. Monroe; Randall Johnston; Douglas Webb; Roger L. Smith; Benny Shumway; Bobby Johnson; Theal Crews; Arnett Richardson; Junior Lee Golden; Jim Bob Keith; Bob L. Wilkerson; Jerry R. Kennedy; James L. Freeman; Marvin E. Meek; Leroy Gray; Leroy Hill; Lealus Thomas; A.W. Barnett; Donald L. Mayfield; Jimmie Masters; Jmwa E. Poerwe; James E. Young; Rickey D. Allen; William W. Partin; James E. Vap; Edith J. Vap; John Reynolds; Arthur Golden; Joe C. Nixon; Willie Joseph; John H. Heil; Donald H. Brechinsen; James Altizen; William T. Wimmer; I.B. Boyd; E. Ferrell Bussing; Jimmie L. Williams; Roy J. Sassano, Sr.; Eleanor C. Mowery; Eugene D. Rider; George W. Baldwin; Garland R. Hooper; Earl Joslin; Karen Nydick; Gerold Wagner; L.V. Foreman; Don Lepley; E.J. Fidler; Claude W. Woeley; Fred M. Silver; Herbert L. Keith; Carl E. Davis; Paul Goodman; Ronald C. Daudill; William P. Dodd; Dennis S. Crews; Willis D. Keesee; Jerry D. Bass; R.T. Skelton; Delbert D. Utsler; Don E. Bailey; Howard Whittenberg; Marcia C. Long; A.C. Phillips; Jo Ann Martin; Leon Combs; Jerry C. Forbes; J.R. Bishop; Billy Reeves; Farrell J. Pickens; James Richard Howells; Lawrence Shelton; Charles Huckabee; Jmwa Axheowswe; Thomas Jaramillo; J. David Smith; W.T. Young; Carl H. Davison; Sharon Key Harris; Lew F. Fresonke; Joe Knapp; Lesley E. Chapman; R.D. Bivins; George W. Barton; Marion A. Neal; Rebecca Crawford; Deatron I. Morgan; W.H. Nevels; Jim Oliver; Clarence E. Smith; Robert Wilson; Linda Lekawski; Michael Fundstein; Jerry L. Bender; William D. Beery; Donald M. Larson; William J. Azlin; Dwight W. Rogers; Judy A. Rogers; Walter R. Lewis; Charles Huckaboy; Barbara Harwell; Rebecca Pearson; Molly Hoffman; Patricia McCanlies; K.E. Sterrett; Thurman B. Nelson; Nelda M. Carroll; Johnny Wallace; Guadalupe Rodriguez; Raymond Davey; L.V. Davis; Bobby D. Price; Gary L. Passon; Lanora Workman; John Davenport; Jimmie D. Jennings; Leo Scruggs; Dallas Niblock; Leo Suggs; Stanley W. Moore; John D. Horn; Anthony Spitzley; Manual Sena; James F. Ayres; Daniel A. Sikorsky; Albert E. Oyos; C.D. Ridgley; Earl Greene; Salvador C. Perez; Cesar B. Sheen; Joe Manuel; Benjamin Saenz; Arturo C. Marquez; Edward Lavelle; Robert Rognon; Bernardo Saenz; Protacio S. Abrego; Steven Moylan; Carl M. Lavender; Ruben D. Cota; Manuel F. Gamez; Narcizo Reaza; Frank M. Hernandez; Ronald Murdock; Jesse Terrazas; Jimmie Rodriguez; Manuel R. Barrera; Howard Wing; Robert R. Contreras; Joe C. Nixon; Oscar J. Munoz; Theresa A. Wright; Dora Perkins; W.H. Hohensee; W.R. Gunn; Bob Kwnnixurr; Kenneth D. Williams; Javier Adame; Manuel M. Holquin; Harry Hill; Rick Skinner; Harold Mitchell; Vince Wolpoff; Warren Yoder; William Salinas; John D. Lent; Carl Christensen; J.M. Ferez; Lisardo Jaramillo; Henry L. Hoskison; Bill Bass; Bob Rognon; Fred Walling; Hector R. Mendoza; Martin Bautista; Daniel A. Merkle; Roger A. Peterson; Jack L. Bynum; Joel E. Henderson, Sr.; Marvin L. Wright; C.R. Blades; Rolando L. Galindo; Esequiel Barcena; Floyd L. Biddlecome, Sr.; Ramon A. Rodriguez; Ruben Williams; Alva J. Chaney, Jr.; Ceasar Val Verde; Gilbert Hernandez; Victor Juarez; John L. Washington; David L. Carney; Thomas Jaranille; James D. Weston; Ronald R. Murdock; Tony C. Gonzales; Richard A. Sanchez; Shirley F. Bennett; Bobby Derring; Fulton Marks, Jr.; Adolfo Elias, Jr.; D. Patrick Wright; Norman E. Cardwell; Robert M. Ferguson; Don R. Wheeler; J. Brannon; Robert A. Wesley; Alvin D. Fitzgerald; James E. Rowe; Alfred M. Martinez; Berry R. Raymondo; Carroll C. Abel; Oscar G. Powell, Jr.; Alvin W. Green; Huey A. Fredeiu; Ben Saenz; Harold R. Dagne; Britt Ingrid Keith; Robert M. Turner, Plaintiffs-Appellants-Cross-Appellees, v. COMMERCIAL LOVELACE MOTOR FREIGHT, INC., also known as C.L. Motor Freight, doing business as Lee Way Motor Freight, Inc.; M.T. Alcox; W.D. Persavich; C.C. McCracken; N.L. Ingrum; H.J. Hill; G.W. McIntyre; Transportation Equipment Services, Inc. and their directors; Edward L. Mulcahy; Phillip White; H.F. Poston, Defendants-Appellees, and Pepsico, Inc., doing business as Lee Way Motor Freight, Inc., a Delaware corporation, individually; S.E. Schroder; James English; Lawrence F. Dickie; Judy Norman-Davis; Richard Campbell, Defendants-Appellees-Cross-Appellants.

United States Court of Appeals, Tenth Circuit.

July 12, 1991.


Attorney(s) appearing for the Case

Joseph C. Long, Norman, Okl. (E.W. Keller and Trent Keller, Keller, Fernald & Keller, Oklahoma City, Okl., with him on the brief), for plaintiffs-appellants.

Harold H. Reader, II, Cleveland, Ohio, and Michael L. Brody, Schiff, Hardin & Waite, Chicago, Ill. (John R. Couch, James E. Golden, Jr., with them on the brief), for defendants-appellees M.T. Alcox, W.D. Persavich, C.C. McCracken, N.L. Ingrum, H.J. Hill, and G.W. McIntyre.

Charles C. Green, Oklahoma City, Okl., Roger Pascal, Michael L. Brody, Robert D. Campbell, Schiff, Hardin & Waite, Chicago, Ill., for defendants-appellees and cross-appellants Pepsico, Inc., Lawrence Dickie, James English, Judy Norman-Davis, Richard Campbell, and Sharon Schroder.

Before McKAY and SEYMOUR, Circuit Judges, and KANE, District Judge.


KANE, Senior District Judge.

This appeal arises out of an action brought by more than four hundred former employees of Lee Way Motor Freight, Inc. against their former employer and others alleging violations of federal and Oklahoma securities law and common law fraud. After a segmented trial to the court on the issue of whether an interest in the instrument at issue, an employee stock ownership plan, constituted a security under federal law, the district court held...

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