Walczak

EPL Prolong, Inc., et al. (collectively “Appellants”) appeal an order of the district court granting a preliminary injunction in favor of appellee Michael Walczak (“Walczak”), an EPL Prolong, Inc. minority shareholder who is the representative in a class action shareholder derivative suit. Appellants argue that the Supreme Court’s recent decision in Grupo Mexicano de Desarrollo, S.A. v. Alliance Bond Fund, Inc., 527 U.S. 308 , 119 S.Ct. 1961 , 144 L.Ed.2d 319 (1999), warrants summary reversal of the district court’s preliminary injunction. Alternatively, Appellants contend that the district court erred in granting the preliminary injunction because Walczak failed to demonstrate: (1) a threat of irreparable injury; or (2) a likelihood of success on the merits. We have jurisdiction pursuant to 28 U.S.C. § 1292 (a)(1), and we affirm the district court’s order issuing a preliminary injunction.

I

Background

EPL Prolong, Inc. (“EPL Prolong”), a California corporation, owns the patent for “Prolong Super Lubricant” (“PSL Patent”), which is a high performance metal lubricant used in automobiles as an additive to motor oil. In 1993, EPL Prolong entered into a license agreement (“1993…