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ZUCKER v. MAXICARE HEALTH PLANS INC.

Nos. 92-55360, 92-55614.

14 F.3d 477 (1994)

Murray ZUCKER, Plaintiff, and Salomon Brothers Inc.; Montgomery Securities, Plaintiffs-Appellants, v. MAXICARE HEALTH PLANS INC.; Fred W. Wasserman; Pamela K. Anderson aka Pamela Wasserman, Defendants-Appellees. Murray ZUCKER; on behalf of himself and all others similarly situated, Plaintiffs-Appellees, and Maxicare Health Plans Inc.; Fred Wasserman; Pamela K. Anderson aka Pamela K. Wasserman; David M. Hallis; Samuel L. Westover; Gerald Zaid; Charles W. Smith, III; Randall Anderson; Howard Freedland; James A. McIntyre; Alan Bloom; Charles E. Lewis; Peter J. Ratican, Defendants-Appellees, v. ERNST & YOUNG, Successor-In-Interest to Ernst & Whinney, Objector-Appellant.

United States Court of Appeals, Ninth Circuit.

Submission deferred August 13, 1993.

Resubmitted January 5, 1994.

Decided January 26, 1994.

Attorney(s) appearing for the Case

Donald J. Schmid and Melanie T. Morris, Gibson, Dunn & Crutcher, Los Angeles, CA for appellants.

Michael D. Dempsey and Robert D. Donaldson, Cooper & Dempsey, and Michael S. Glassman, Clemens, Glassman and Clemens, Los Angeles, CA for appellees.

Before: NORRIS, WIGGINS, and O'SCANNLAIN, Circuit Judges.

WIGGINS, Circuit Judge:

FACTS

Plaintiffs in May 1988 filed this class action in the district court against Maxicare Health Plans, Inc. ("Maxicare") and others. The complaint alleged violations of federal securities laws in connection with the sale of Maxicare securities, for which Salomon Brothers Inc., Montgomery Securities, and Ernst & Young (or its predecessor in interest, Ernst & Whinney) (collectively "Appellants") had served as underwriters...

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