Vaughn v. Teledyne, Inc.

628 F.2d 1214 Fed. Sec. L. Rep. P 97,637 R. Eugene VAUGHN, G. Kenneth Vaughn, Eugene W. Vaughn, Glenn A. Vaughn and Marilyn Anne Swindall, Plaintiffs-Appellants, v. TELEDYNE, INC., a Delaware corporation, Henry E. Singleton, George A. Roberts, George Kozmetsky, Robert C. Jackson, Arthur Rock and Claude E. Shannon, Defendants-Appellees. No. 78-2309. United States Court of Appeals, Ninth Circuit. Argued and Submitted Jan. 9, 1980. Decided Sept. 17, 1980. Walter H. Drane, Schurmer, Drane, Bullis & McCarthy, Los Angeles, Cal., for plaintiffs-appellants. Kenneth R. Heitz, William A. Masterson, Los Angeles, Cal., for defendants-appellees. Appeal from the United States District Court for the Central District of California. Before CHOY and ANDERSON, Circuit Judges, and SMITH, * District Judge. CHOY, Circuit Judge: 1 Appellants filed a complaint alleging violations of sections 10(b) and 14(e) of the Securities Exchange Act of 1934 (the Act), 15 U.S.C. §§ 78j(b), 78n(e), and Rule 10b-5 of the Securities and Exchange Commission (SEC) regulations, 17 C.F.R. § 240 .10b-5; fraud; and breach of a fiduciary duty by Teledyne and several of its directors. The district court…