SHAPIRO v. CANTOR

No. 1771, Docket 96-9529.

123 F.3d 717 (1997)

Sidney SHAPIRO, Carol E. Acker, Robert J. Anderson, Robert Anderson, Herman Bertuleit, Philip Byrd, Rh Simpson, Jeffrey Slutsky, Chester Chen, Steven Tillis, Ciao Originals Ltd., Ralph Cioffi, Frieda Spivak, Seymour Cohen, John Constantine, Robert Thiebolt, Thomas Cornelius, Matthew Zimmerman, Jack Ebert, Stoney Elmore, Morris Feder, Jerome Feinberg, Norman Wolf, Kenneth Futter, Hillel Gauchman, Julia Gauchman, Joseph Goldberg, Elliot Goldstein, Wenrose Investments, Herbert Weber, Raymond Haeryluk, also known as Raymond Hawryluk, Edah Halliday, Mark Immowitz, Steven Jonas, Michael Kalvert, Lois Weaver, Edwin Kowpke, Robert Lapin, Thomas Laporta, Leff & Wolf Co., Jeffrey Leff, Dennis Levine, Marcia Levine, Alexander Lewin, John Low, James T. Malouf, Christina Marino, Michael Marks, Salvatore Vitale, Jerry Murrell, Hal Pahmer, Lee Pampel, Robert Parsont, Jay Pitlake, David Prescott, Henry Raffel, Clifford Rosenberg, Jack Rudick, Ira Trueman, Steven Schaeffer, Leonard Schonberg, Bush & Wagner, Melynda C. Caplan, Clinton C. Cator, Gerald B. Cohen, Eugene DeBlasio, Anthony DiPrima, Richard P. Donohoe, Easco, Inc., Judah S. Eliezer, Four C. Productions, Inc., Samuel D. Gaby, Charles Glatstian, Paul Gottbetter, Geoffry Gouch, Theodore E. Greenberg, William A. Henley, Marc J. Horman, K & M Partners, Gerald Kaufman, Alfred Lee, Ronald Levine, Stephen H. Littman, George Lowen, David D. Maytag, Nolan James Meredith, Jerry Oppenheim, Barbara Pakula, Philip Pakula, George Pinsley, P.C., Barbara Quinn, James B. Rector, Theodore Roosevelt, IV, Sebastian A. Ruma, Arnold L. Sabin, Karl Saliter, Stuart M. Salsbury, Abdol R. Sammi, Steven A. Sandler, Hayg Seferian, Stephen Shield, Manfred Sklar, Smeets Partners, Harold Spivack, Mary J. Stanhope, Henry L. Terrie, Jr., Phillip G. Terrie, Vincent T. Tucker, Jr., Douglas W. Tyler, Jr., Duane E. Vanderslice, Herman Venick, Douglas Webb, Jack Weiner, Leonard Wingarten, Harry Weinrauch, William Wolf, Ralph A. Zastenik, Joseph Allan Serulik, Judith B. Zerulik, Thomas Quinn, William Singler, Colt Mercantile Corporation, Max Israelson, Steven J. Bosses, Robert Schoenfeld, Plaintiffs-Appellants, v. Stephen CANTOR, Martin Cianciaruso, C & G Ventures, Inc., Bernard Teitelbaum, Harold Spivak, Jan K. Smeets, Ruffa, Video USA Assoc. #1, Bruce Greenberg, Video USA Assoc. #2, Video USA Assoc. #4, Video USA Associates -1(B), Limited Partnership, Video USA Assoc. 2(C), Video USA Assoc. 2(D), Video USA Assoc. 2(A), Video USA Associates -1, Video USA Associates -4, Video USA International Corp., Video USA, Ltd., Norman Nick, Mast Capital Investors, Ltd., Robert Weaver, Samuel Konigsberg, Marvin Greenfield, David Greenberg, Defendants, Jerry Cohen, Touche Ross and Co., Alan Friedman, Deloitte & Touche & Company, Defendants-Appellees.

United States Court of Appeals, Second Circuit.

Decided September 8, 1997.


Attorney(s) appearing for the Case

Lawrence Profeta, Warshaw, Burstein, Cohen, Schlesinger & Kuh, LLP, New York City (Stephen E. Powers, Warshaw, Burstein, Cohen, Schlesinger & Kuh, LLP, New York City, on the brief), for Plaintiffs-Appellants.

Leon P. Gold, Proskauer, Rose, Goetz & Mendelsohn, LLP, New York City (Mark E. Davidson and Richard L. Spinogatti, Proskauer, Rose, Goetz & Mendelsohn, LLP, New York City, on the brief), for Defendants-Appellees.

Before: WALKER, CALABRESI, and LAY, Circuit Judges.


LAY, Circuit Judge.

In 1984 several individuals, David Greenberg, Bruce Greenberg, Norman Nick, Stephen Cantor and Marvin Greenfield (the principals), formed seven limited partnerships to develop and operate a chain of nearly 100 "Video USA" stores for the rental of video recordings. They also created various corporations to serve as general partners of the limited partnerships, as well as companies to manage and operate the video stores. The principals created three...

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