Downing v. Howard

LEAHY, District Judge.

The major question for decision is whether this action is simply a traditional stockholder’s derivative suit based upon a breach of fiduciary duties by officers and directors acting under an unlawful conspiracy to waste assets with other defendants or whether this action is brought to enforce any duty or liability created under the Public Utility Holding Company Act of 1935. This is the first time the question has been put and everyone shares my inability to find a controlling authority on the first two alleged causes of action.

1. While the complaint charges the action…