Neponsit Investment Co. v. Abramson

QUILLEN, Justice:

This appeal is from an approval of a settlement of a stockholders’ derivative suit on behalf of Belscot Retailers, Inc, The objectors-appellants to the settlement, Nep-onsit Investment Company and Franklin Corporation, are both stockholders of Bel-scot.

Barbara Lynn Stores, Inc. and Belscot were both engaged in the operation of discount clothing stores and were in direct competition with each other. On October 14, 1977, Barbara Lynn announced publicly that it had agreed to purchase 52% of the outstanding shares of Belscot and further that Barbara Lynn intended to sell its…