Delaware Court Clarifies Remedy for Minority Stockholders for Breach of Duty of Disclosure in Short-form Merger | Practical Law

Delaware Court Clarifies Remedy for Minority Stockholders for Breach of Duty of Disclosure in Short-form Merger | Practical Law

An update on the Delaware Supreme Court's decision that when there has been a breach of the fiduciary duty of disclosure in a short form merger, the appropriate remedy for minority stockholders is a quasi-appraisal remedy that does not require them to opt into the class or escrow a portion of the merger proceeds they previously received.

Delaware Court Clarifies Remedy for Minority Stockholders for Breach of Duty of Disclosure in Short-form Merger

by PLC Corporate & Securities
Published on 13 Jul 2009 • Delaware, USA (National/Federal)
An update on the Delaware Supreme Court's decision that when there has been a breach of the fiduciary duty of disclosure in a short form merger, the appropriate remedy for minority stockholders is a quasi-appraisal remedy that does not require them to opt into the class or escrow a portion of the merger proceeds they previously received.