SMOLOWE v. DELENDO CORPORATION


46 F.Supp. 758 (1942)

SMOLOWE et al. v. DELENDO CORPORATION et al. (UNITED STATES, Intervenor).

District Court, S. D. New York.

Supplemental Opinion November 12, 1942.


Attorney(s) appearing for the Case

Arthur J. Sleppin, of New York City, for plaintiff Smolowe.

Samuel A. Mehlman, of New York City (Arthur J. Sleppin and Jack Hart, both of New York City, of counsel), for plaintiff Levy.

Jay Leo Rothschild, of New York City (Louis Rivkin, of New York City, of counsel), for defendants.

Mathias F. Correa, U. S. Atty., of New York City (Chester T. Lane, Sp. Asst. to the Atty. Gen., and William L. Lynch, Asst. U. S. Atty., of New York City, of counsel), for United States, Intervenor.

Chester T. Lane, Gen. Counsel, of Washington, D. C. (Christopher M. Jenks, Asst. Gen. Counsel, of Philadelphia, Pa., Donald R. Seawell, of Washington, D. C., and Milton P. Kroll, of Philadelphia, Pa., of counsel), for Securities & Exchange Commission.


BRIGHT, District Judge.

These actions were brought by Philip Smolowe and M. William Levy, stockholders of the defendant Delendo Corporation, to recover for the corporation profits received between December 1, 1939, and June 1, 1940, by the defendants I. J. Seskis and Henry C. Kaplan, president and vice president respectively, and directors of the corporation, each owning approximately 12% of its common stock. The cases were consolidated and tried together without...

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