Quintal v. Adler

Plaintiffs, trustees in bankruptcy of an insolvent corporation, seek to recover dividends paid to one hundred and *301seventy-eight defendants, stockholders, one year prior to the adjudication in bankruptcy, on the ground that the dividends were unlawfully paid out of the capital of the corporation. The dividends in question were declared in November, 1928, and June, 1929, and were paid in January and July, 1929. The complaint does not allege that the dividends were paid during insolvency or that such payments rendered the corporation insolvent, nor does it allege that the stockholders received…