Frank J. Pettinelli v. Edmund R. Danzig

FAY, Circuit Judge:

This stockholder’s derivative suit arises out of the formation and capitalization in the early 1970s of Skyway Development Corporation, a Florida land development corporation. The appellants are investors in Skyway who allege that the officers and directors of Skyway violated securities law (15 U.S.C. §§ 77a-77aa), and breached their fiduciary duties as corporate officials causing dilution of appellants’ stock. The appellants also allege that the appellees fraudulently induced them to invest in Skyway. The defendants moved for summary judgment which was granted for all…