A summary of Southern California-related business litigation developments during the week of Dec. 11.

Shareholders Sue First Executive: A shareholder suit was filed in U.S. District Court in Los Angeles Monday charging that First Executive Corp. misled the public by trying to hide a $700-million investment in the junk bond market and artificially maintaining a high stock price. The suit alleges that in September 1989, the company responded to increasing takeover pressure by planning to decrease the amount of its insurance reserves and reduce its risk from a portfolio of junk bonds because of the turmoil in that market, the suit said. A First Executive official denied the claims in the suit and said the company would defend itself vigorously. (Filed Dec. 11, 1989, Case No. 897135 WDK)