Del. High Court OKs Net Loss Poison Pill

Law360, New York (October 5, 2010, 4:03 PM EDT) -- In a case over the attempted buyout of an ailing technology company, Delaware’s Supreme Court, for the first time, has upheld a corporation’s right to utilize an increasingly popular form of “poison pill” that protects a company’s valuable net operating losses.

The decision, handed down Monday by the Supreme Court of the State of Delaware in Versata Enterprises Inc. and Trilogy Inc. v. Selectica Inc., goes beyond previous Delaware precedent to allow a poison pill to kick in at a 4.99 percent ownership stake.

The decision...
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