The Delaware Court of Chancery, in Robert Garfield v. Blackrock Mortgage Ventures, LLC, et al. and PennyMac Financial Services, Inc., C.A. No. 2018-0917-KSJM, memo. op. (Del. Ch. Dec. 20, 2019), denied a motion to dismiss a stockholder action challenging restructuring transactions on ratification grounds, finding LLC members controlling 85% of a company’s voting rights constituted a control group.
NEW: K&L Gates discusses the decision in Court of Chancery Applies Entire Fairness Standard to PennyMac’s Reorganization Transaction.
Morris James discusses the decision in Chancery Declines to Apply Corwin Where a Stockholder-Plaintiff Adequately Alleged the Existence of a “Control Group”.
$$$ Morris James discusses the decision in Stockholder Group Benefited From Reorganization Sufficient to Deny ‘Corwin’ Dismissal Bid
Prof. Ann Lipton discusses the decision in More on Controlling Shareholders.
[$$$] Law360 discusses the decision in BlackRock Can’t Get Chancery To Nix PennyMac Investor Suit.