Sneider v. Transcontinental & Western Air, Inc.

LEAHY, District Judge.

Observations and Conclusions.

Plaintiff, on the basis 'of the pleadings and affidavits, urges the amendment modifying the agreement requiring Hughes Tool Company to take the stock at market value was fraudulent, because it results in an unjust benefit to Hughes at the expense of the remaining shareholders and because this is particularly bad, here, where the directors, who negotiated the agreement, were controlled by'Hughes. Plaintiff claims if there is to be c-quity financing, it should be accomplished by offering new stock to all of defendant’s present stockholders at a…