University of Michigan Law School Scholarship Repository
Abstract
Plaintiff, for himself and all other stockholders of R corporation similarly situated, brought action against the directors of the corporation, alleging that they had caused the dismantling and removal of corporate factories and the curtailment of production, that great loss to the corporation had been caused thereby, and that these things were done solely to discourage and punish the corporation\u27s employees by removing hope of re-employment. Defendants moved to dismiss the complaint for failure to state a cause of action. The trial court denied the motion. The appellate division reversed, stating that the complaint showed only a reasonable exercise of business judgment. On appeal, held, reversed. The alleged acts amount to actionable breaches of duty by the directors. Abrams v. Allen, 297 N.Y. 52, 74 N.E. (2d) 305 (1947)
