Brill v. Blakeley

We are concerned on this appeal with the rights of preferred stockholders of 551 Fifth Avenue, Inc. (hereinafter called the “ Company ”), a domestic corporation. We are asked to pass upon an order allowing a settlement of two certain actions, the nature of which will be detailed later. The Company was incorporated in 1925, by the Fred F. French Security Co., Inc. (hereinafter called “ Security ”), a real estate promoter, the public being induced by a prospectus to buy this preferred stock at $100 a share on a promise of 6% cumulative dividends and preferred repayments, with the right to all…