• Delaware Court of Chancery Affirms Use of Stockholder Rights Plan
  • September 3, 2010 | Authors: Joseph L. Christensen; Ariel J. Deckelbaum; Stephen P. Lamb; Frances F. Mi
  • Law Firm: Paul Weiss Rifkind Wharton Garrison LLP - New York Office
  • In Yucaipa American Alliance Fund II, L.P. v. Riggio, the Delaware Court of Chancery upheld the implementation of a stockholder rights plan by the board of directors of Barnes & Noble, Inc. The court specifically approved the plan’s grandfather provision which allowed Barnes & Noble’s largest stockholder to maintain its ownership level above the level that would otherwise trigger the rights plan.