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DRAFT FOR ATTORNEY REVIEW — NOT FINAL

Lindsey v. Normet, 405 U.S. 56 (1972)

Citation
Lindsey v. Normet, 405 U.S. 56 (1972)
Parent Document
Lindsey v. Normet, 405 U.S. 56 (1972)
Effective Date
1972-02-23

Other Sections in This Document (263)

Full Text

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Cohen v. Beneficial Loan Corp., 337 U. S. 541 (1949), is distinguishable from the instant case. There, the Court upheld a state law that required a shareholder who wished to file a shareholder’s derivative suit but who owned less than 5% of the corporation’s stock or whose stock was worth less than $50,000 to file as a precondition to bringing the suit a bond for the reasonable expenses, including attorney’s fees, that might_be incurred by defendants. The security requirement there applied to a plaintiff and its purpose was to protect the corporation from being injured by “strike suits” that harmed the very interests that plaintiffs claimed to be protecting. --- 040dissent by Douglas --- Mr. Justice Douglas,
dissenting in part. I