Our lawyers provide innovative and practical counsel on a wide variety of capital raising and securities law compliance matters. We represent clients ranging from emerging private companies to established public companies. With each, we build long-term relationships, generating efficiencies and helping them realize their business goals.
Delaware Court of Chancery Affirms Use of Stockholder Rights Plan
Practices
August 25, 2010
In Yucaipa American Alliance Fund II, L.P. v. Riggio, the Delaware Court of Chancery upheld the implementation of a stockholder rights plan by the board of directors of Barnes & Noble, Inc. The court specifically approved the plan's grandfather provision which allowed Barnes & Noble's largest stockholder to maintain its ownership level above the level that would otherwise trigger the rights plan. The court also discussed its views related to low-threshold stockholder rights plans, such as those adopted to protect net operating losses.