YOUR BUSINESS AUTHORITY

Springfield, MO

Log in Subscribe

2011 Cornerstone Casework: John Q. Hammons Hotels Inc.

Posted online
This class-action case arose from the merger and privatization of publicly traded John Q. Hammons Hotels Inc. The plaintiffs alleged that John Q. Hammons, as the controlling stockholder, used his position to negotiate private benefits for himself that weren’t shared with minority stockholders. A trial was held in June 2010 in Georgetown, Del. The Delaware Chancery Court determined the merger price was fair to minority stockholders, that the process leading to the merger was fair and that Hammons breached no duty to minority shareholders. The trial court’s decision was appealed to the Delaware Supreme Court, which upheld the decision in August of this year. Shareholders sought damages in excess of $93 million. The decisions analyzed in-depth use of the business judgment and entire fairness review standards by which the decisions of corporate fiduciaries are judged.

Click here for the full 2011 Cornerstone Casework feature.[[In-content Ad]]

Comments

No comments on this story |
Please log in to add your comment

Comments

No comments on this story |
Please log in to add your comment
Editors' Pick
Nixa High School launches apprenticeship program

Local officials aim to involve more businesses for job training.

Most Read
SBJ.net Poll
Has your business made any changes in response to shifting federal government priorities?

*

View results

Update cookies preferences