Mahler v. Trico Products Corp.

The plaintiffs brought separate stockholders’ derivative actions in 1942 against the defendants, the .actions being consolidated a year later. The complaints alleged in substance that through the misconduct of certain individual defendants there had been an unreasonable and unlawful accumulation of surplus resulting in the incurring of heavy tax penalties by the defendant Trico Products Corporation.

The defendant Trico Products Corporation in January of 1945 moved to compel the plaintiffs to furnish security pursuant to section 61-b of the General Corporation Law. This appeal is from the order…