SPEED v. TRANSAMERICA CORPORATION

Nos. 11836, 11839, 11834, 11835, 11838, 11837, 11840.

235 F.2d 369 (1956)

William S. SPEED et al. v. TRANSAMERICA CORPORATION. Appeal of William S. SPEED et al. Appeal of TRANSAMERICA CORP. (three cases). Jack FRIEDMAN et al. v. TRANSAMERICA CORP. Appeal of FRIEDMAN ASSOCIATES et al. Appeal of Estelle FRIEDMAN, Administratrix of Estate of Jack Friedman, deceased. Philip ZAHN, Suing individually and on behalf of all similarly situated holders of Class A Common Stock of The Axton-Fisher Tobacco Company v. TRANSAMERICA CORPORATION. Appeal of Philip ZAHN.

United States Court of Appeals Third Circuit.

Decided August 14, 1956.


Attorney(s) appearing for the Case

Edwin D. Steel, Jr., Wilmington, Del., Gerhard A. Gesell, Washington, D. C. (William S. Megonigal, Jr., Wilmington, Del., Paul C. Warnke, Washington, D. C., Morris, Steel, Nichols & Arsht, Wilmington, Del., Covington & Burling, Washington, D. C., on the brief), for Transamerica Corp.

Daniel O. Hastings, Wilmington, Del. (Hastings, Lynch & Taylor, Wilmington, Del., Frank & Gonnet, Claude L. Gonnet, New York City, Weinstein & Levinson, New York City, Arthur Frank, New York City, Clarence W. Taylor, Wilmington, Del., on the brief), for plaintiffs-appellees Speed et al. and Friedman et al.

Frank Weinstein, New York City (Samuel J. Levinson, New York City, Samuel Handloff, Wilmington, Del., William H. Foulk, Herbert L. Corbin, Wilmington, Del., on the brief), amici curiae.

Thomas G. Meeker, General Counsel, Washington, D. C. (Alexander Cohen, Sp. Counsel, Securities and Exchange Commission, Washington, D. C. on the brief), for Securities and Exchange Commission.

Before MARIS, McLAUGHLIN and HASTIE, Circuit Judges.


MARIS, Circuit Judge.

These consolidated appeals involve three class actions brought in the District Court for the District of Delaware by former and present stockholders of Axton-Fisher Tobacco Company, a Kentucky corporation which manufactured tobacco products, against its majority stockholder, Transamerica Corporation, a holding and investment company incorporated in the state of Delaware. The stockholders charged that Transamerica had fraudulently deprived them...

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