Fuller v. American MacHine & Foundry Co.

McGOHEY, District Judge.

This is a stockholders’ derivative action in which jurisdiction is based on diversity of citizenship. Plaintiffs are stockholders of International. They allege that American, as majority stockholder of International, has exercised its control of International to the latter’s detriment. Upon motion by International and pursuant to Section 61-b of the New York General Corporation Law, McK. Consol. Laws, c. 23, Judge Irving R. Kaufman ordered plaintiffs to furnish $3,500 security for International’s reasonable expenses, including attorneys’ fees. The order further…