May 9, 2017
Court Questions Accelerated Vesting of Equity Comp
– Broc Romanek
Here’s a teaser from this Shearman & Sterling memo:
The Delaware Chancery Court recently dismissed the shareholder class action suit – In re Columbia Pipeline Group, Inc. Stockholder Litigation, C.A. No. 12152-VCL (Del. Ch. Mar. 7, 2017) – reaffirming that a fully-informed vote of a company’s disinterested stockholders will result in application of the business judgment rule. However, in a recently filed transcript of the proceedings, the Court made some noteworthy remarks regarding equity acceleration in the context of change of control transactions.