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Business Associations Keyed to Hamilton
Merritt-Chapman & Scott Corp. v. Wolfson
Facts
Wolfson (Plaintiff), Gerbert (Plaintiff), Kosow (Plaintiff), and Staub (Plaintiff), agents of Merritt-Chapman & Scott Corporation (MCS) (Defendant), were criminally charged on various counts of violating federal securities laws resulting from a plan to cause Defendant to secretly purchase hundreds of thousands of shares of its own common stock. Wolfson (Plaintiff) pleaded nolo contendere to a count of filing false annual reports and other charges were dropped upon a $10,000 fine and an 18-month suspended sentence; Gerbert (Plaintiff) agreed not to appeal his conviction of perjury before the Securities and Exchange Commission (SEC) and was fined $2,000 with an 18-month suspended sentence. All other charges were dropped, including those against Kosow (Plaintiff) and Staub (Plaintiff). Each sought to be indemnified by MCS (Defendant) for the costs of their legal defense. Both sides moved for summary judgment, with Defendant arguing that no indemnification should be granted.
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