Judge Cans Class Action Over BJ's $2.8B Buyout

Law360, New York (January 31, 2013, 8:01 PM EST) -- A Delaware Chancery judge Thursday tossed a shareholder class action over private equity firm Leonard Green & Partners LP's $2.8 billion buyout of BJ's Wholesale Club Inc., finding the plaintiffs failed to show BJ's board had acted in bad faith in agreeing to the deal.

The plaintiffs failed to seriously challenge the board's financial disinterestedness and independence from the deal or allege facts supporting the claim that the board consciously disregarded its duties in securing the takeover, according to Vice Chancellor John W. Noble.

The board...
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