Eisenberg v. Flying Tiger Line, Inc.

Flying Tiger (defendant) restructured so that it became a wholly owned subsidiary of a new parent company, Flying Tiger Corporation, with old Flying Tiger shares replaced by equivalent parent-company shares; Max Eisenberg (plaintiff), a shareholder, argued this restructuring diluted his ability to vote his shares to influence the underlying business and sued in federal court to reverse it. Flying Tiger demanded Eisenberg post a security bond as required by New York law for derivative suits seeking judgment in the corporation's favor; Eisenberg argued his suit was instead a personal, representative action on his own behalf as a shareholder, not derivative. The district court sided with Flying Tiger and dismissed for failure to post the bond.