Southern Peru And The Entire Fairness Standard

Law360, New York (November 22, 2011, 1:30 PM EST) -- In a post-trial decision, In Re Southern Peru Copper Corporation Shareholder Derivative Litigation, Civ. A. No. 961-CS (Del Ch., Oct. 14, 2011), the Delaware Chancery Court applied the entire fairness standard in its review of a merger where a controlling stockholder stood on both sides of the transaction. This decision by Chancellor Leo Strine Jr. is significant because it serves as a primer on the moral and financial hazards associated with self-dealing transactions involving controlling stockholders.

The controlling stockholder (CS) of an NYSE-listed mining company (Southern...
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