This section contains the nature of the case and procedural background.

Cannon (P) a shareholder, filed a derivative suit against U.S. Acoustics Corp. (D) and other individual defendants that accused them of numerous violations of federal securities laws. Cannon sought to disqualify a law firm involved in the case because the law firm represented both the corporation and individual defendants. U.S. Acoustics (D) and the law firm argued that the conflict was theoretical and that if a real conflict arose, they would withdraw.

The legal issues presented in this case will be displayed here.

The court's holding and decision will be displayed here.

Legal analysis from Dean's Law Dictionary will be displayed here.