Hubbard v. Jones & Laughlin Steel Corporation

SCHOONMAKER, District Judge.

Bertha H. Hubbard and Norman Johnson, stockholders of the defendant corporation, each owning fifty shares of defendant’s preferred stock, originally brought this suit to enjoin the defendant from holding a stockholders’ meeting to vote upon a proposed merger of defendant with two of its wholly-owned subsidiaries, i. e., the Vesta Coal Company and Shannopin Coal Company, on the ground that the recapitalization proposed in the merger was unfair, inequitable, and unlawful. The corporations involved are all Pennsylvania corporations. The plaintiffs made a motion for a…