Saylor v. Lindsley

Shareholders of Tonopah Mining Company of Nevada (defendant) brought a derivative class action challenging its sale of Tonopah Nicaragua Company stock to Mines Inc. (defendants), seeking millions in damages, but class counsel settled the case for just $250,000 without informing the shareholders until roughly six weeks before the confirmation hearing. Several class members objected to the settlement through their own counsel at the hearing, but the district court confirmed it anyway after briefing, and the objecting members appealed.