Berger v. General United Group, Inc.

REYNOLDSON, Justice.

Plaintiffs in this derivative action were stockholders in General United Group, Incorporated (GUG), an Iowa insurance holding company. They alleged defendant Wheelabrator-Frye, Inc. secured control of GUG by purchasing the stock of defendants, GUG president Chapman and chairman Schroeder, for $1.3 million over its fair market value, which constituted a commercial bribe. The twice-substituted petition ultimately alleged GUG was merged in 1973 into defendant All American Delaware Corporation, a Delaware corporation, and the latter corporation in turn merged into defendant…