Palley v. McDonnell Company

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 prior to the aforesaid merger which rendered plaintiff’s primary cause of action moot. Plaintiff has no objection to the merger in question, pointing…