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Levin v. Metro-Goldwyn-Mayer, Inc.
United States District Court for the Southern District of New York
264 F.Supp. 797 (S.D.N.Y. 1967)
The stockholder annual meeting for Metro-Goldwyn-Mayer, Inc. (MGM) was coming up and two different groups of stockholders wanted to nominate two different slates of directors for MGM’s board. Both groups solicited proxies for the meeting. MGM’s proxy statement stated that MGM would “bear all cost in connection with the management solicitation of proxies.” One group, the O’Brien group (defendants), used MGM funds in its solicitation of proxies, including use of MGM funds to retain attorneys, hire a public relations firm, and hire proxy soliciting organizations. The other group, consisting of Philip Levin and other stockholders (plaintiffs), brought suit against MGM and the O’Brien group, seeking injunctive relief against the O’Brien group’s continued solicitation of proxies in that manner.
Rule of Law
Holding and Reasoning (Ryan, J.)
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