Chancery Tosses Class Suit Over $3B Zimmer Biomet Cashout
By Jeff Montgomery (August 26, 2021, 2:42 PM EDT) -- Delaware's Chancery Court has dismissed a derivative suit for damages from Zimmer Biomet Holdings Inc. directors, top officers and private equity investors related to a $3 billion private equity cash-out and stock dive in 2016, finding that stockholders unjustifiably skipped an initial demand for action by the medical device maker's directors.
Vice Chancellor Lori W. Will concluded in dismissing the suit with prejudice Wednesday that the stockholders' failure to first put the allegations to the board — or show why it would have been futile — doomed claims that included breach of fiduciary duty, insider trading, unjust enrichment and breach of...
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