Gilbert v. Case

In this stockholders’ derivative action defendants Case, McClintock and Glen Alden Corporation move to dismiss the complaint on the ground that it fails to set forth facts sufficient to constitute a cause of action. Defendants Manheim, Glover, Johnson and Fuller also move for the same relief.

Defendants are charged with the selling of an undefaulted mortgage of $6,210,000 to the mortgagor or his nominees for the sum of $3,000,000 consisting of $2,500,000 in cash and a second mortgage of $500,000, resulting in a discount of the mortgage at a loss of approximately $3,200,000; and that such…