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NEUWIRTH v. ALLEN

Nos. 118-120, Dockets 29009-29011.

338 F.2d 2 (1964)

Adelaide NEUWIRTH, Plaintiff-Appellee, Northeast Airlines, Inc., Intervenor-Plaintiff-Appellee, v. George E. ALLEN, Ira Guilden, Waldo M. Hatch, Oswald L. Johnston, Eugene S. Northrop, Robert L. Stearns, David A. Stretch, John C. Paige & Company, Inc. and Atlas Corporation, Defendants-Appellees. Frank ENTEL and Goldie Entel, Plaintiffs-Appellees, v. Ira GUILDEN et al., Defendants-Appellees. Leon DEBINS and Herman A. Gelman et al., Plaintiffs-Appellees, v. George E. ALLEN et al., Defendants-Appellees. Irving Zagorski, Harry W. Voege and Anna May Tunmore, as Trustees, and Ida May Voege, Appellants.

United States Court of Appeals Second Circuit.

Decided November 5, 1964.

Attorney(s) appearing for the Case

Samuel Becker, New York City for Northeast Airlines, intervenor-plaintiff-appellee.

Leonard G. Bisco, New York City (Bisco, Winkler & Higgiston, New York City, on the brief), for Atlas Corporation, appellee.

Simpson Thacher & Bartlett, New York City, for Oswald Johnston, Eugene Northrop and David Stretch, defendants-appellees.

Stroock & Stroock & Lavan, New York City, for Ira Guilden, defendants-appellees.

Richard B. Persinger, New York City (Jacobs Persinger & Parker, New York City, on the brief), for John C. Paige & Co. and Waldo M. Hatch, appellees.

Milton Paulson, New York City, General Counsel for plaintiffs-appellees.

David M. Palley, New York City (Nathan B. Kogan, New York City, on the brief), for Irving Zagorski, appellant.

Gustave B. Garfield, New York City, for Harry W. Voege, Anna May Tunmore and Ida May Voege, appellants.

Before LUMBARD, Chief Judge, and HAYS and MARSHALL, Circuit Judges.

PER CURIAM:

Appellants challenge the district court's approval of a $120,000 settlement for three derivative suits. Shareholders of the Atlas Corporation and Northeast Airlines, Inc. sued to recover fees paid by Atlas and its controlled companies, which included Northeast at the time of payment, to an insurance brokerage firm of which an Atlas director was president and part owner. Atlas was then an "investment company" under § 3 of the Investment Company Act...

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