Rademacher v. Russ

NORDBYE, Chief Judge.

Plaintiff alleges in the second cause of action that he is a stockholder in the corporate defendant Northwest Seed Grain, Inc. This action is in the nature of a shareholder’s derivative suit, alleging that the individual defendants are in control of the corporation and have squandered and wasted its assets. Plaintiff’s first cause of action, on the other hand, seeks to recover the price that plaintiff paid for his stock in Northwest and alleges that he was induced to purchase that stock by the fraudulent misrepresentations of the individual defendants as to the financial…