By Jeff Montgomery (July 13, 2020, 9:39 PM EDT) -- Diversified financial company Jefferies Financial Group Inc. and seven HomeFed Corp. directors on Monday lost a bid for dismissal of a Chancery Court suit accusing them of unfair conduct in a $189 million, two-for-one stock deal that gave Jefferies all HomeFed stock not already owned by the financial company.
In the decision, Chancellor Andre G. Bouchard found that stockholders who sued made a sufficiently reasonable argument that Jefferies — which already was HomeFed's controlling investor — pursued negotiations for the deal without adopting or abiding by rules to counter conflicts of interest. That could potentially spike the defendants' claim to business justice deference...
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