Stock Issuance Void In Tony Roma's Board Row: Chancery

Law360, Wilmington (February 1, 2018, 10:00 PM EST) -- The Delaware Chancery judge presiding over a fight about the board composition for the company that owns the Tony Roma's restaurant chain ruled Thursday that a stock issuance designed to dilute an investment fund’s holdings and prevent a takeover was void and can’t be used to calculate shareholder votes.

In a 25-page opinion, Vice Chancellor Tamika Montgomery-Reeves ruled that a move by Roma Restaurant Holdings Inc.’s board in 2016 to create an employee compensation plan that would issue enough restricted stock to dilute the holdings of...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.