United States Third Circuit

District court erred in its determination that plaintiffs' fraud in the inducement claims could only be brought derivatively and were without merit as a matter of law; however, adopting the test for a district court to use when considering whether to lift a receivership stay of litigation under SEC v. Wencke, the district court's refusal to lift the stay is affirmed.

Appellate Information

• Argued 10/18/2005
• Decided 11/08/2005
• Published 11/08/2005

Judges

• VAN ANTWERPEN, Circuit Judge., Before VAN ANTWERPEN, ALDISERT and COWEN, Circuit Judges.

Court

• United States Third Circuit

Counsel

• For Appellant:
  
• Paul G. Shapiro (Argued), Office of the United States Attorney, Philadelphia, PA, Patrick K. McCoyd, Tracey R. Seraydarian, Post & Schell, P.C., Philadelphia, PA, for the Government, on behalf of the Small Business Administration., Eric Kraeutler (Argued), G. Jeffrey Boujoukos, Catharine E. Gillespie, Morgan, Lewis & Bockius LLP, Philadelphia, PA, for Movants-Appellants Leonard and Lynne Barrack.