Settlement OK'd In AIPC-Ralcorp Merger Suits

Law360, New York (October 13, 2010, 4:37 PM EDT) -- A state judge approved a settlement Wednesday resolving two shareholder class actions disputing Ralcorp Holdings Inc.’s $1.2 billion purchase of American Italian Pasta Co., a decision the plaintiffs’ counsel said will help rein in corporate misuse of the so-called top-up option in short-form mergers.

Vice Chancellor John W. Noble of the Delaware Chancery Court signed off on the settlement, which provides for additional disclosures concerning the sale to AIPC shareholders and weakens the top-up option in the merger agreement.

The plaintiffs withdrew their motion for a...
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