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Chancery Tosses NRG Reclassification Suit On MFW Grounds

Law360, Wilmington (December 11, 2017, 9:44 PM EST) -- A Delaware Chancery judge on Monday threw out a shareholder lawsuit challenging power generating giant NRG Energy Inc.'s stock reclassification of its yieldco, ruling that the standards under the MFW precedent that can protect controlling-party takeovers from stockholder claims were met, and can also extend to reclassification transactions.

In a 55-page opinion, Chancellor Andre G. Bouchard wrote that the 2015 reclassification and recapitalization that cemented NRG’s control over yieldco NRG Yield Inc. met the elements of the now-famous Kahn v. M&F Worldwide Corp. precedent that permits...
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