Pa. Minority Shareholders Can Sue Over Mergers: 3rd Circ.

Law360, New York (August 31, 2011, 7:59 PM EDT) -- The Third Circuit on Wednesday ruled that minority shareholders in Pennsylvania who are squeezed out in a merger don't have to rely on appraisal proceedings as their only remedy, reviving Mitchell Partners LP's suit against Irex Corp.

In the precedential ruling, two of the three panel judges agreed that, under Pennsylvania law, minority shareholders aren't precluded from filing breach of contract and other claims in addition to participating in appraisal proceedings.

"If we were to adopt the interpretation of the statute advocated by defendants, this would...
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.