Homewood v. Standard Power & Light Corp.

LEAHY, District Judge.

This derivative stockholders’ action started in September, 1941, on behalf of Standard Power and Light Corporation against certain investment bankers who allegedly illegally controlled the corporation to its loss. Answer was filed. The action has since been dormant. Now, plaintiffs seek to file a supplemental complaint — which defendants oppose — charging Standard with doing no business, as a useless holding company1 with operating expenses exceeding income, with asset values less than liquidating preferences on Standard’s preferred stock, and with sole voting power in…