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PALLEY v. McDONNELL COMPANY

295 A.2d 762 (1972)

David M. PALLEY, Plaintiff, v. McDONNELL COMPANY and Hycon Mfg. Company, Defendants.

Court of Chancery of Delaware, New Castle.

June 28, 1972.

Attorney(s) appearing for the Case

Irving Morris, of Cohen, Morris & Rosenthal, Wilmington, and Nathan B. Kogan, New York City, for plaintiff.

Richard F. Corroon, of Potter, Anderson & Corroon, Wilmington, for defendant McDonnell Co.

S. Samuel Arsht, of Morris, Nichols, Arsht & Tunnell, Wilmington, for defendant Hycon Mfg. Co.

MARVEL, Vice Chancellor:

Plaintiff, who was a common stockholder of the defendant Hycon Mfg. Co. prior to the elimination of his stock in such corporation as the result of the merger of Hycon into Actron Industries, Inc., a wholly-owned subsidiary of what was originally known as McDonnell Aircraft Corporation,1 filed this derivative suit on behalf of his former corporation, Hycon, for damages allegedly caused the latter by its parent McDonnell...

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