Michaels v. Lesser

DUFFY, Chancellor:

This is an action by two stockholders of Louis Lesser Enterprises, Inc., brought derivatively for its benefit and for holders of the Corporation’s Class A common stock. Plaintiffs seek cancellation of the conversion in September 1963 of certain Class B stock into Class A and an accounting for some $725,000 distributed on the A stock to various individual defendants. The complaint was filed on November 5, 1965. Answers were filed by various defendants on January 3, 1966. Plaintiffs took some discovery but none after January 23, 1968.

Chancery Court Rule 40, Del.C.Ann. provides…