Parkoff v. General Telephone & Electronics Corp.

OPINION OF THE COURT

Jones, J.

The rejection on the merits of a stockholders’ derivative action brought by one shareholder on behalf of the corporation against designated directors and officers for corporate waste and breach of fiduciary duty operates as a res judicata bar to a similar action instituted by another shareholder where the first action was not collusive or fraudulent, the second shareholder was not excluded from *416participation in the first action, and both actions arose out of the same underlying transaction or series of connected transactions.

Plaintiff, a stockholder of General…