Chancery Badly Bungled Stock Fix Ruling, Del. Justices Told

By Jeff Montgomery (November 13, 2019, 10:13 PM EST) -- Investors in furniture company Design Within Reach told Delaware's Supreme Court on Wednesday that the state's chancellor violated "bedrock law" in allowing use of technical corporate act correction rules to retroactively validate a controlling stockholder's holdings and a later $170 million merger.

David B. Hennes of Ropes & Gray LLP, counsel for investor Andrew Franklin, told a three-justice panel that Chancellor Andre G. Bouchard incorrectly applied sections 204 and 205 of Delaware's General Corporation law when DWR and controlling hedge fund Glenhill Capital Management LP were confronted with challenges to their holdings after DWR's $170 million merger with Herman Miller Inc....

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