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Mr. Stein, the partnership, or the trust that 2,000 shares
of Saztec stock had been or would be transferred from the
Steins' personal account to the trust.
The Steins' Lawsuit for Unauthorized Trading
Three or four months after the execution of the
contribution agreement, the Steins came to believe that
Steinberg & Lyman or Broadcort or both were trading stocks
in their Broadcort account without their authorization.
In 1988, the Steins filed a lawsuit in the U.S. District
Court for the Western District of Pennsylvania against
Broadcort, Steinberg & Lyman, Mr. Tassinari, Ms. Janice
Murphy, and others. The complaint and amended complaint
allege unauthorized trading, breach of agency, breach of
implied contract, breach of fiduciary duty, fraud and
deceit, violation of the Pennsylvania Securities Act, and
negligence. The alleged unauthorized trading involved
shares of stock of a company, Criticare Systems, Inc., for
which Steinberg & Lyman allegedly was the underwriter and
market maker. It did not involve shares of Saztec stock.
The complaint and amended complaint allege that the
following unauthorized trades, involving the shares of
Criticare Systems, Inc., had taken place:
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