The Delaware Court of Chancery recently awarded $1.2 billiion in a matter alleging breach of the duty of loyalty by a controlling stockholder in a merger. In a recent publication, our colleagues Robert W. Brownlie, John Reed, Courtney Stewart, and Jennifer A. Lloyd, describe the case and suggest approaches to keep in mind in similar circumstances as follows:
The Delaware Court of Chancery, in the recent decision In re Southern Peru Copper Corp. Shareholder Derivative Litigation, 30 A.3d 60, (Del. Ch. 2011), has awarded US$1.2 billion in damages (plus interest from the merger date to judgment and payment) after finding the controlling stockholder defendants had breached their fiduciary duty of loyalty in a stock-for-stock merger transaction. Read the rest here.