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SCHWARTZ v. ROMNES

No. 72 Civ. 3196.

357 F.Supp. 30 (1973)

Donald E. SCHWARTZ, as the General Guardian for Pamela B. Schwartz, a Minor, in a derivative capacity as a shareholder of American Telephone and Telegraph Company, Plaintiff, v. H. I. ROMNES et al., Defendants.

United States District Court, S. D. New York.

March 26, 1973.

Attorney(s) appearing for the Case

Norwick, Raggio & Jaffe, New York City, for plaintiff.

Davis, Polk & Wardwell, New York City, for the individual defendants; Lawrence E. Walsh, Philip C. Potter, Jr., and George A. Bermann, New York City, of counsel.

Royall, Koegel & Wells, New York City, for defendant Yes for Transportation; Richard N. Winfield and James M. McMahan, New York City, of counsel.

Kenneth J. Lucey, New York City, for defendant New York Telephone Co.

John S. Luckstone, New York City, for defendant American Telephone and Telegraph Co.

ROBERT L. CARTER, District Judge.

OPINION AND ORDER

The plaintiff moves as a shareholder of American Telephone and Telegraph Company (ATT) to compel the return of $50,000.00 which New York Telephone Company (N.Y. Telephone), a wholly-owned subsidiary of ATT, contributed to "Yes for Transportation" (YFT), a not-for-profit corporation. It is admitted that the $50,000.00 was "intended for use and was used by said corporation in effectuating the corporate purpose...

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