System Meat Company v. Stewart

The district court approved an agreement for settlement made by defendants and plaintiff over objections of intervening stockholders of plaintiff. The question on appeal by objectants is whether the agreeement was fair.

Plaintiff, a packinghouse corporation, commenced this suit, claiming that a transaction between its former president Peter F. Smith and defendant B. M. Stewart was fraudulent. Plaintiff implicated defendant System Investment Corporation, “SIC,” and System Investment Corporation of Nebraska, “SICN,” both of which were controlled by their majority stockholder, Stewart. Smith had…