Investor 'Squeezed Out' By Stock Split, Chancery Told
Law360, Wilmington (June 14, 2019, 9:42 PM EDT) -- A stockholder filed a complaint in Delaware Chancery Court on Friday claiming construction material supplier Winsupply orchestrated an unfair reverse stock split in 2017 at a company it controls that "squeezed" her out as a minority shareholder at an unfair price.
Collierville Winnelson Co. stockholder Linda Joan Channell sued CWC, its directors and controlling stockholder Winsupply Inc., claiming they breached their fiduciary duties in connection with a reclassification of stock and subsequent 110:1 reverse stock split that cashed her out about $81,000, an amount she terms a "grossly unfair consideration."
Channell, the widow of CWC's former president, said she is dependent...
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