Delaware Court Grants Summary Judgment in M&A Class Action Suit 03/10/2014Posted by Morse, Barnes-Brown Pendleton in M&A.
Tags: chancery, class action, delaware court
On February 3, 2014, the Delaware Court of Chancery granted defendants’ summary judgment motion in the matter of In re Answers Corporation Shareholders Litigation. This case related to the acquisition of Answers Corporation by AFCV Holdings, LLC. The plaintiffs alleged that three of the Board members of Answers (comprised of the company’s CEO and two outside directors designated by a venture capital investor) were conflicted and in control of the negotiation process with the buyer and the Board breached its fiduciary duties by acting in bad faith as a result of “purposely engaging in a limited shopping process”. To learn the Chancery Courts ruling and what it means for other companies engaging in a merger or acquisition, please see the full post here.
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