The Delaware Court of Chancery, in The Frederick Hsu Living Trust v. Oak Hill Capital Partners III, LP, et al. and ODN Holding Corp., C.A. No. 12108-VCL, memo. op. (Del. Ch. May 4, 2020), found a controlling stockholder engaged in unfair dealing by causing a company to accumulate cash to satisfy its redemption rights, but that its actions were entirely fair because market conditions made other deployment of cash likely useless.

NEW:  K&L Gates discusses the decision in Court Finds Defendants Did Not Breach Fiduciary Duties By Causing Company to Accumulate Cash in Anticipation of Stock Redemption Rather Than Investing In Long-Term Growth.

Stinson discusses the decision in Private Equity Firm Proves Strategy was Entirely Fair.

$$$ Law360 discusses the decision in Revisiting The Benefits Of An Efficient Contract Breach.

Shearman & Sterling discusses the decision in Delaware Court of Chancery Finds Controlling Investor’s Cash-Accumulation Strategy in Advance of Preferred Stock Redemption Payments Satisfied Entire Fairness.

Stinson discusses the decision in Private Equity Firm Proves Strategy was Entirely Fair.

Weil Gotshal discusses the decision in Preferred Buyers Beware.