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Delaware Corporate Law Bulletins Category

Delaware Court Summons Corwin to Dismiss Breach of Fiduciary Duty Claim Grounded in Allegations of Director Self-Interest in Connection with Merger

Apr. 4, 2018—Delaware-Court-Summons-Corwin-to-Dismiss-Breach-of-Fiduciary-Duty-Claim-Grounded-in-Allegations-of-Director-Self-Interest-in-Connection-with-Merger ABSTRACT Also determines that plaintiffs failed to adequately allege that atarget company board breached its duty of loyalty or acted in bad faith AUTHOR Robert S. Reder Professor of the Practice of Law at Vanderbilt University Law School, has been serving as a consulting attorney at Milbank, Tweed, Hadley & McCloy LLP in New...

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Delaware Court Determines Corwin Not Available to “Cleanse” Alleged Director Misconduct Due to “Structurally Coercive” Stockholder Vote

Apr. 4, 2018—Delaward-Court-Determines-Corwin-Not-Available-to-Cleanse-Alleged-Director-Misconduct-Due-to-Structurally-Coercive-Stockholder-Vote ABSTRACT Stockholder vote structured as a choice between accepting unrelated transactions benefiting a large stockholder or forgoing beneficial M&A transactions judged “structurally coercive” AUTHOR Robert S. Reder Professor of the Practice of Law at Vanderbilt University Law School, has been serving as a consulting attorney at Milbank, Tweed, Hadley & McCloy LLP in New...

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Delaware Supreme Court Reverses Dismissal of Fiduciary Breach Claims Against Target Company Directors

Apr. 4, 2018—Delaware-Supreme-Court-Reverses-Dismissal-of-Fiduciary-Breach-Claims-Against-Target-Company-Directors ABSTRACT Determines that Corwin did not warrant early dismissal because tendering stockholders were not “fully informed” of the reasons underlying Board Chairman’s abstention AUTHORS Robert S. Reder Professor of the Practice of Law at Vanderbilt University Law School, has been serving as a consulting attorney at Milbank, Tweed, Hadley & McCloy LLP in New...

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Delaware Supreme Court Refuses to Establish a Presumption Favoring Deal Price in Statutory Appraisal Proceedings

Feb. 19, 2018—Delaware-Supreme-Court-Refuses-to-Establish-a-Presumption-Favoring-Deal-Price-in-Statutory-Appraisal-Proceedings AUTHORS Robert S. Reder Professor of the Practice of Law at Vanderbilt University Law School, has been serving as a consulting attorney at Milbank, Tweed, Hadley & McCloy LLP in New York City since his retirement as a partner in April 2011. Blake C. Woodward Vanderbilt University Law School, JD Candidate, May 2018; B.A.,...

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Delaware Court Refuses to Enjoin Buyer From Terminating Merger Agreement Due to Failure of Closing Condition

Feb. 19, 2018—Delaware-Court-Refuses-to-Enjoin-Buyer-From-Terminating-Merger-Agreement-Due-to-Failure-of-Closing-Condition AUTHORS Robert S. Reder Professor of the Practice of Law at Vanderbilt University Law School, has been serving as a consulting attorney at Milbank, Tweed, Hadley & McCloy LLP in New York City since his retirement as a partner in April 2011. Nicole A. Dressler J.D./M.S. Finance Candidate at Vanderbilt University, will be starting...

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Delaware Court Refuses to Dismiss a “Material Adverse Effect” Claim Brought by an Unhappy Buyer

Feb. 7, 2018—Delaware Court Refuses to Dismiss a Material Adverse Effect Claim Brought by an Unhappy Buyer AUTHORS Robert S. Reder Professor of the Practice of Law at Vanderbilt University Law School, has been serving as a consulting attorney at Milbank, Tweed, Hadley & McCloy LLP in New York City since his retirement as a partner in...

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Delaware Court Rejects Claim that Directors Acted in Bad Faith By Selling Company Facing Activist Threat

Feb. 7, 2018—Delaware Court Rejects Claim that Directors Acted in Bad Faith By Selling Company Facing Activist Threat ABSTRACT Reaffirms high bar for proving that directors acted in conscious disregard of their obligations AUTHORS Robert S. Reder Professor of the Practice of Law at Vanderbilt University Law School, has been serving as a consulting attorney at Milbank,...

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Delaware Court Refuses to Dismiss Common Stockholder’s Challenge to Redemption of Preferred Stock Owned by Controlling Stockholder

Sep. 18, 2017—Delaware-Court-Refuses-to-Dismiss-Common-Stockholders-Challenge-to-Redemption-of-Preferred-Stock-Owned-by-Controlling-Stockholder1 ABSTRACT Fiduciary standard of conduct requires board to maximize long-term value of common stock when exercising discretion in connection with contract rights of preferred stockholders AUTHOR Robert S. Reder Robert S. Reder, Professor of the Practice of Law at Vanderbilt University Law School, has been serving as a consulting attorney at Milbank, Tweed, Hadley...

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Delaware Court Enjoins Stockholder Vote Pending Corrective Disclosures

Aug. 31, 2017—Delaware Court Enjoins Stockholder Vote Pending Corrective Disclosures ABSTRACT Requires a “complete picture of the facts in one place” before allowing acquiring company stockholder meeting to proceed AUTHOR Robert S. Reder Robert S. Reder, Professor of the Practice of Law at Vanderbilt University Law School, has been serving as a consulting attorney at Milbank, Tweed,...

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Delaware Court Grants Pleading-Stage Dismissal of Litigation Challenging Control Stockholder-Led Buyout

Aug. 31, 2017—Delaware Court Grants Pleading-Stage Dismissal of Litigation Challenging Control Stockholder-Led Buyout ABSTRACT Because buyout followed “M&F Framework,” court not troubled by existence of higher third-party offer that was rejected by control stockholders AUTHOR Robert S. Reder Robert S. Reder, Professor of the Practice of Law at Vanderbilt University Law School, has been serving as a...

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Delaware Chancellor Again Invokes Corwin in Granting Directors’ Motion to Dismiss Breach of Fiduciary Duty Claim

Aug. 31, 2017—Delaware-Chancellor-Again-Invokes-Corwin-In-Granting-Directors-Motion-to-Dismiss1 ABSTRACT Discusses potential application of Corwin in the context of allegedly unreasonable deal protections included in merger agreement AUTHOR Robert S. Reder Robert S. Reder, Professor of the Practice of Law at Vanderbilt University Law School, has been serving as a consulting attorney at Milbank, Tweed, Hadley & McCloy LLP in New York City...

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Delaware Court Refuses to Invoke Corwin to “Cleanse” Alleged Director Misconduct Despite Stockholder Vote Approving Merger

Aug. 31, 2017—Delaware Court Refuses to Invoke Corwin to Cleanse Alleged Director Misconduct ABSTRACT Alleged material omissions in disclosures to stockholders lead court to deny defendant directors’ motion to dismiss; also addresses meaning of “coercion” in Corwin context AUTHOR Robert S. Reder Robert S. Reder, Professor of the Practice of Law at Vanderbilt University Law School, has...

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Delaware Courts Confront Question Whether “Cleansing Effect” of Corwin Applies to Duty of Loyalty Claims

May. 9, 2017—Delaware Courts Confront Question ABSTRACT Recent rulings settle apparent divergence between Comstock and Larkin decisions and narrow exception to application of Corwin to cases where controlling stockholder extracts personal benefits in a merger transaction AUTHORS Robert S. Reder Professor of the Practice of Law at Vanderbilt University Law School, has been serving as a consulting...

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Doubling Down on “Plain Language”: Delaware Court Extends In re VAALCO Energy by Invalidating Supermajority Vote Requirement for Director Removal

May. 4, 2017—Doubling Down on Plain Language Delaware Court Extends ABSTRACT Court finds that plain language of DGCL §141(k) unequivocally requires only a simple stockholder majority to remove members of an unclassified board of directors AUTHORS Robert S. Reder Professor of the Practice of Law at Vanderbilt University Law School, has been serving as a consulting attorney...

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Dell Appraisal Proceeding: Delaware Court of Chancery Finds Price Payable in Management Buyout Understates “Fair Value” by 28%

Feb. 27, 2017—Dell Appraisal Proceeding Delaware Court of Chancery Finds Price Payable in Management Buyout Understates “Fair Value” by 28% ABSTRACT Vice Chancellor Laster declines to give weight to transaction price negotiated by independent board committee and approved by unaffiliated stockholders AUTHORS Robert S. Reder Professor of the Practice of Law at Vanderbilt University Law School, has...

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Delaware Courts Diverge on Whether “Cleansing Effect” of Corwin Applies to Duty of Loyalty Claims

Jan. 13, 2017—Delaware Courts Diverge on Whether “Cleansing Effect” of Corwin Applies to Duty of Loyalty Claims ABSTRACT Comstock requires a finding that entire fairness review is inapplicable before Corwin triggers business judgment deference. Larkin applies Corwin’s “cleansing effect” to all transactions absent a controlling stockholder. AUTHORS Robert S. Reder Professor of the Practice of Law at...

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