Lifshutz v. Adams

The action is a stockholder’s derivative action, brought on behalf of Community Water Service Company against eighteen of the corporation’s past and present directors for an accounting and for damages. The amended complaint sets forth two causes of action, one in fraud; the other in negligence, against all the individual defendants. Eight of the individual defendants have challenged, by a motion for judgment on the pleadings, the sufficiency of the facts stated as constituting a first cause of action against them.

The facts said to constitute a first cause of action may be summarized as…