Chancery Moves Suit Over $650M Terraform Deal Toward Trial
By Jeff Montgomery (October 30, 2020, 10:53 PM EDT) -- A stockholder suit challenging a $650 million Terraform Power Inc. private stock placement in 2018 moved toward trial Friday after a Delaware vice chancellor refused to buck a controversial precedent allowing direct stockholder claims to survive even after a go-private deal stubbed out related, company-owned derivative damages claims.
Vice Chancellor Sam Glasscock III's decision waded into and out of a yearslong judicial debate over the viability of "dual-natured," both direct and derivative claims targeting deals that unfairly dilute share values, rooted in a 2006 Delaware Supreme Court decision in Gentile v. Rossette.
Canada-based Brookfield's purchase of Terraform's shares through an affiliate...
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