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Corporations-Class Actions Under Section 16(B) Of The Securities Exchange Act Of 1934-Federal Rule 23, Richard. J. Archer
Corporations-Class Actions Under Section 16(B) Of The Securities Exchange Act Of 1934-Federal Rule 23, Richard. J. Archer
Michigan Law Review
Pursuant to section 16 (b) of the Securities Exchange Act of 1934 an action was commenced by a shareholder to recover for the corporation profits realized by another shareholder through "short swing" transactions in securities of the corporation, the estimated profits being $50,770. Plaintiff's attorney filed an affidavit stating the reasons why recovery of the full amount was doubtful and made application for , leave to settle and compromise for $5,000. The corporation's attorney agreed to this proposal. Held, the merits of the compromise cannot be considered until in conformance with Rule 23 ( c), actual notice of the …