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INTERNAL PROTOTYPE — NOT LEGAL ADVICE — DO NOT SEND

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

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

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Cohen v. Beneficial Industrial Loan Corp., 337 U.S. 541 , 69 S.Ct. 1221, 93 L.Ed. 1528 (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. 1 Ore.Rev.Stat. § 19.040(1). 2 Id., § 105.160. 3