Civil Procedure Keyed to Hazard
Saylor v. Lindsley
The sale of the stock of the Tonopah Nicaragua Company (Defendant) by the Tonopah Mining Company of Nevada (Defendant) to Mines Inc. (Defendant) was challenged in a derivative suit by the shareholders of Tonopah Nevada. This suit was in the form of a class action with the multitude of shareholders in Tonopah Nevada as the operative class. On September 24, 1970, the attorney for the shareholders, Mr. Markowitz, settled the suit for the amount of $250,000. The shareholders sought damages into the millions. The shareholders were not informed of the settlement until November 4, 1970 with a hearing date to confirm the settlement set for December 1, 1970. At the time of the hearing, several members of the class, through counsel, objected to the settlement. After briefing on the issue, the district court confirmed the settlement. The objecting class members appealed.
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