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KANTER v. BARELLA

No. 05-5398.

489 F.3d 170 (2007)

Rhoda KANTER, on behalf of herself and derivatively on behalf of MedQuist v. Hans M. BARELLA; Belinda W. Chew; William E. Curran; Stephen H. Rusckowski; A. Fred Ruttenberg, Esq.; Richard H. Stowe; John H. Underwood; Scott M. Weisenhoff; Erik J. Westerink; Jan H.M. Hommen; Koninklijke Philips Electronics N.V.; MedQuist Inc. a New Jersey Corporation Rhoda Kanter, Appellant.

United States Court of Appeals, Third Circuit.

Filed May 25, 2007.

Attorney(s) appearing for the Case

Deborah R. Gross, Esquire (Argued), Tina Moukoulis, Esquire, Law Offices of Bernard M. Gross, Philadelphia, PA, Attorneys for Appellant.

Brian T. Frawley, Esquire (Argued), Sullivan & Cromwell, New York, NY, Michael R. Griffinger, Esquire, Lan Hoang, Esquire, Timothy S. Susanin, Esquire, Gibbons, P.C., Newark, NJ, Attorneys for Appellees, Hans M. Barella, Belinda W. Chew, William E. Curran, Stephen H. Rusckowski, Scott M. Weisenhoff, Erik J. Westerink, Jan H.M. Hommen, Koninklijke Philips Electronics N.V.

Randall W. Bodner, Esquire (Argued), Ropes & Gray, Boston, MA, Jeffrey W. Lorell, Esquire, Saiber, Schlesinger, Satz & Goldstein, Newark, NJ, Attorneys for Appellees, A. Fred Ruttenberg, Richard H. Stowe, John H. Underwood.

Neal R. Marder, Esquire (Argued), Gail J. Standish, Esquire, Peter E. Perkowski, Esquire, Winston & Strawn, Los Angeles, CA, Marc J. Gross, Esquire, Greenbaum, Rowe, Smith & Davis, Roseland, NJ, Attorneys for Appellee, MedQuist Inc.

Before SCIRICA, Chief Judge, McKEE and NOONAN, Circuit Judges.

OPINION OF THE COURT

SCIRICA, Chief Judge.

At issue in this shareholders' derivative action for breach of fiduciary duty is whether plaintiff properly pleaded demand futility under Fed.R.Civ.P. 23.1. The District Court dismissed under Fed.R.Civ.P. 12(b)(6). We will affirm.

I.

Rhoda Kanter, a shareholder of MedQuist, Inc., a New Jersey corporation, brought a shareholders' derivative suit against MedQuist, ten individuals identified as members...

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