Mrs. Guilberta Dakin Maggiore v. J. C. Bradford

WEICK, Circuit Judge.

The suit in the District Court was a stockholders derivative action. It was brought by minority stockholders of Phillips & Buttorff Corporation, a Tennessee corporation, 1 *to rescind a transaction whereby the controlling shareholders of P & B (hereinafter referred to as Comer Group) financed the purchase of their stock with funds derived from their sale to P & B of 60,000 shares of an unlisted stock owned by them in Wm. R. Moore Dry Goods Company 2 of Memphis, Tennessee for $2,700,000.

The complaint alleged conspiracy and fraud and charged a violation of the fiduciary…