Curtiss v. Wilmarth

In June, 1923, the defendant Grand Eapids Knitting Mills filed a petition in voluntary bankruptcy. The assets of the company were disposed of, from the proceeds of which the unsecured creditors received payment of 22.14 per cent, of their claims. The trustee filed his final account, and was discharged on December 2, 1924.

On February 21, 1925, a large number of the stockholders filed the bill of complaint herein, alleging that they had been induced to purchase their stock by the fraudulent representations of the individual defendants, the then board of directors of the company, and praying for…