In a landmark decision issued on March 14, the Delaware Supreme Court affirmed the Delaware Court of Chancery’s entry of summary judgment for MacAndrews & Forbes Holdings, Inc., holding for the first time that the deferential business judgment standard of review applied to a merger between a controlling stockholder and its subsidiary. The decision provides a roadmap for structuring mergers involving controlling stockholders that can reduce costly and time-consuming stockholder litigation. Skadden represented MacAndrews & Forbes in the Delaware Chancery and Supreme Courts.

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