Bally's "Poison Pill" Stumbles In Suit By Hedge Funds

Law360 (January 12, 2006, 12:00 AM EST) -- Hedge funds seeking to oust the chief of fitness center operator Bally Total Fitness Holding Corp. are cheering after a state court denied a Bally motion to expedite discovery and trigger its anti-takeover "poison pill."

Liberation Investments Ltd. sued Bally in December 2005 in the Court of Chancery of the State of Delaware, challenging the legality of provisions in Bally's poison pill that prevent one or more stockholders from collectively holding more than 15% of Bally's stock.

But the court said Bally waited too long to...
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