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LEWIS v. HAT CORPORATION OF AMERICA

150 A.2d 750 (1959)

Harry LEWIS, David H. Harmon, Louis Dubow, George J. Campo, Jr., Seymour Bayewitch, Beatrice Korman, Arthur Kalman, Morris Brockman, and Louis Kaye, Co-Partners doing business under the name of Joint Operating Company, Plaintiffs, v. HAT CORPORATION OF AMERICA, Bernard L. Salesky, Joseph M. Salesky, David Salesky, Charles Salesky, Charles R. Stevenson, Earl K. Mueller, George B. Moran, Tillman Cahn, Frank H. James, John Cavanagh, J. Garvan Cavanagh, Harold J. Mahnken, Henry Reeve and Salesky Brothers, Inc., Defendants.

Court of Chancery of Delaware, New Castle County.

May 1, 1959.

Attorney(s) appearing for the Case

Irving Morris of Cohen & Morris, Wilmington, and Milton Paulson, New York City, for plaintiffs.

William S. Potter of Berl, Potter & Anderson, Wilmington, and Paul D. Miller, of Mudge Stern, Baldwin & Todd, New York City, for defendant, Hat Corporation of America.

S. Samuel Arsht, of Morris, Nichols, Arsht & Tunnell, Wilmington, and Abraham L. Freedman, of Wolf, Block, Schorr & Solis-Cohen, Philadelphia, Pa., for defendants, Bernard L. Salesky, Joseph M. Salesky and David Salesky.

MARVEL, Vice Chancellor.

Plaintiffs as partners are the owners of twenty shares of Hat Corporation of America's 4½% cumulative preferred voting stock and bring this action for the benefit of such corporation, naming the directors of Hat Corporation and Salesky Brothers, Inc.1 as the real defendants.

The verified complaint alleges that in April 1955 Salesky Brothers, Inc. directly and indirectly acquired sufficient voting stock...

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