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NATHENSON v. ZONAGEN INC.

No. 99-20449.

267 F.3d 400 (2001)

James M. NATHENSON, on behalf of himself and all others similarly situated; DSAM Global Value Fund Ltd.; Jonathan Margalit; Amit Sanghvi; Jianbo Xie; John Derosa; Robert Strassman; Dean Hagen; Arno Hausmann, Plaintiffs-Appellants, v. ZONAGEN INC.; et al., Defendants, Zonagen Inc.; Joseph Podolski; Steven Blasnik; M. Sutter, Defendants-Appellees.

United States Court of Appeals, Fifth Circuit.

Revised October 15, 2001.

Attorney(s) appearing for the Case

Douglas G. Thompson, Donald J. Enright (argued), Finkelstien, Thomas & Loughran, Washington, DC, Roger B. Greenberg, David E. Sharp, Greenberg Peden, Houston, TX, for Plaintiffs-Appellants.

David D. Sterling (argued), Samuel Woolin Cooper, Baker Botts, Houston, TX, for Defendants-Appellees.

Luis de la Torre (argued), Jacob H. Stillman, Eric Summergrad, Securities & Exchange Commission, Washington, DC, for Securities and Exchange Commission, Amicus Curiae.

Before GARWOOD, DeMOSS and PARKER, Circuit Judges.

GARWOOD, Circuit Judge:

Plaintiffs-appellants James Nathenson and others (collectively, the plaintiffs) filed this putative class action in the court below against defendants-appellants Zonagen, Inc. (Zonagen), Zonagen chief executive officer and director Joseph Podolski (Podolski) and Zonagen outside directors and major shareholders Steven Blasnik (Blasnik) and Martin Sutter (Sutter) (collectively, the defendants). In their complaint,

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