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STEPAK v. ADDISON

Nos. 91-8945, 92-8379.

20 F.3d 398 (1994)

Barnett STEPAK and Roger Mondschein, derivatively and on behalf of The Southern Company, Plaintiffs-Appellants, v. Edward L. ADDISON; William J. Cabaniss, Jr.; Charles H. Chapman, Jr.; William P. Copenhaver; A.W. Dahlberg; Jack Edwards; Joseph M. Farley; H. Allen Franklin; Arthur M. Gignilliat, Jr.; L.G. Hardman, III; Elmer B. Harris; Douglas L. McCrary; Earl D. McLean, Jr.; William A. Parker, Jr.; H.G. Pattillo; William J. Rushton, III; Robert W. Scherer; Gloria M. Shatto; Herbert Stockham; Vince Whibbs; W.L. Westbrook and The Southern Company, Defendants-Appellees.

United States Court of Appeals, Eleventh Circuit.

April 15, 1994.

Attorney(s) appearing for the Case

John G. Bell, Bell & Pannell, Augusta, GA, Martin D. Chitwood, Atlanta, GA, Daniel W. Krasner, Wolf, Haldenstein, Adler, Freeman & Herz, Lawrence P. Kolker, Harvey Greenfield, New York City, for appellants in No. 91-8945.

Wallace E. Harrell, Gilbert, Harrell, Gilbert, Sumerford & Martin, Brunswick, GA, John J. Dalton, Troutman, Sanders, Lockerman & Ashmore, James E. Joiner, Kevin C. Greene, Atlanta, GA, Robert G. Stachler, Taft, Stettinius & Hollister, G. Jack Donson, Mark G. Kobasuk, Thomas Y. Allman, Cincinnati, OH, Ralph H. Greil, Troutman, Sanders, Atlanta, GA, William O. Fifield, Sidley & Austin, Chicago, IL, for appellees in No. 91-8945 and 92-8379.

John C. Bell, Jr., Bell & Pannell, Augusta, GA, Lawrence P. Kolker, Wolf, Haldenstein, Alder, Freeman & Herz, Daniel Krasner, Harvey Greenfield, New York City, for appellants in No. 92-8379.

Before BLACK and CARNES, Circuit Judges, and CLARK, Senior Circuit Judge.

CARNES, Circuit Judge:

I. INTRODUCTION

Appellants Barnett Stepak and Roger Mondschein are shareholders of the Southern Company ("Southern"), a major public utility holding company whose subsidiaries provide electricity to consumers in Alabama, Florida, Georgia, and Mississippi. Stepak demanded that the company bring suit to recoup losses allegedly caused by a breach of fiduciary duty by certain directors and officers of Southern and its subsidiaries. After...

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