Fed. Sec. L. Rep. P 99,484 John F. Maher v. Zapata Corporation v. William Maldonado, Objector-Appellant

GARWOOD, Circuit Judge:

This is an appeal by William Maldonado, a Zapata Corporation stockholder, from a judgment approving settlement of a shareholders’ derivative action brought by other shareholders on behalf of Zapata Corporation against several of its past and present officers and directors based upon their alleged violations of the federal securities laws and state corporate law.

The principal questions are whether the district court abused its discretion in approving the settlement where the preclusive effect of the settlement agreement and the judgment rendered thereon could possibly…