Heesch v. Pittsburgh Steel Co.

SCHOONMAKER, District Judge.

This is a class-action brought by plaintiffs as a committee, suing in behalf of all holders of 7% cumulative preferred stock of defendant-corporation, attacking the validity of this corporation’s plan of capital readjustment.

The plaintiffs allege in a petition filed herein that the defendant-corporation is now seeking a compromise of the matter here in litigation by the offer of 5%% prior preferred stock to the holders of the outstanding 7% cumulative preferred stock. The plaintiffs allege that this proposal is a compromise of this suit, which requires the approval…