Gilbert v. Curtiss-Wright Corp.

This derivative stockholders’ action arises out of the fact that three subsidiaries of the corporation involved, all of which are now merged, and the individual defendants Allard and Webster pleaded guilty to certain indictments found as a result of acts by Allard and Webster and others in connection with shipments of contraband in violation of Federal embargo. Fines aggregating $260,000 were imposed on the said corporations and $11,000 each on Allard and Webster. The parent corporation paid all the fines imposed on the subsidiary corporations and the fees of counsel for all the defendants…