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TURNER v BERNSTEIN Click to find out why . . .



Keywords & Phrases
CaseNo: C.A. No. 16,190, CourtCode: CC, CourtName: IN THE COURT OIF CHANCERY OF THE STATE OF DELAWARE, Plaintiff: TURNER, State: DE Delaware, UniqueCaseRef: DE>CC>00016190, Genderm, Class Certification, Directors, Motion, Merger, Bernstein, Summary Judgment, Stockholders, Disclosure, Duty, Delaware, Del, Settlement, Medicis, Appraisal Rights, Shareholders, Fund, Richard, Class Members, Discovery, Materials, Diprima, Material Facts, Chancery, Partial Summary Judgment, Transaction, Class Action, Stipulation, Affidavits, Plaintiff Bernstein, Statutory, Merger Consideration, Renewed Motion, Fiduciary Duties, Turner, Facts, Supr, Material Fact, Vice Chancellor , ContentID: 120239621

Case Documents
1 2001-02-20 ORDER AND FINAL JUDGEMENT
[ see first page and extracted highlights below  ] ItemID: 114928
4 pages
PDF
2 2000-12-08 STIPULATION AND AGREEMENT OF COMPROMISE SETTLEMENT AND RELEASE
[ see first page and extracted highlights below  ] ItemID: 100131
20 pages
PDF
3 2000-10-19 LETTER
[ see first page and extracted highlights below  ] ItemID: 103214
18 pages
PDF
4 2000-08-11 MEMORANDUM OPINION
[ see first page and extracted highlights below  ] ItemID: 100417
32 pages
PDF
5 2000-08-01 PLAINTIFFS RESPONSE TO DEFENDANTS JULY 28 2000 SURREPLY BRIEF
[ see first page and extracted highlights below  ] ItemID: 103215
20 pages
PDF
6 2000-07-28 DEFENDANTS SURREPLY BRIEF IN OPOSITION TO MOTION FOR CLASS CERTIFICATION
[ see first page and extracted highlights below  ] ItemID: 103216
16 pages
PDF
7 2000-07-24 PLAINTIFFS REPLY BRIEF IN SUPPORT OF MOTION FOR CLASSS CERTIFICATION
[ see first page and extracted highlights below  ] ItemID: 103217
35 pages
PDF
8 2000-07-10 DEFENDANTS ANSWERING BRIEF IN OPPOSITION TO PLAINTIFFS MOTION FOR CLASS CERTIFICATION
[ see first page and extracted highlights below  ] ItemID: 103218
26 pages
PDF
9 2000-06-06 MEMORANDUM OPINION
[ see first page and extracted highlights below  ] ItemID: 100416
42 pages
PDF
10 2000-05-26 DEFENDANTS REPLY BRIEF IN FURTHER SUPPORT OF MOTION TO COMPEL DISCOVERY
[ see first page and extracted highlights below  ] ItemID: 103219
22 pages
PDF
11 2000-05-15 DEFENDANTS OPENING BRIEF IN SUPPORT OF MOTION TO COMPEL DISCOVERY
[ see first page and extracted highlights below  ] ItemID: 103221
8 pages
PDF
12 2000-05-15 DEFENDANTS SUPPLEMENTAL MEMORANDUM IN OPPOSITION TO PLAINTIFFS RENEWED MOTION FOR PARTIAL SUMMARY JUDGMENT
[ see first page and extracted highlights below  ] ItemID: 103220
25 pages
PDF
13 2000-03-31 PLAINTIFFS REPLY BRIEF IN SUPPORT OF RENEWED MOTION FOR PARTIAL SUMMARY JUDGMENT
[ see first page and extracted highlights below  ] ItemID: 103222
23 pages
PDF
14 1998-07-13 PLAINTIFFS REPLY BRIEF IN SUPPORT OF MOTION FOR PARTIAL SUMMARY JUDGMENT
[ see first page and extracted highlights below  ] ItemID: 103223
36 pages
PDF
15 1998-06-26 REPLY BRIEF IN SUPPORT OF MOTION TO DISMISS AND ANSWERING BRIEF IN OPPOSITION TO MOTION FOR PARTIAL SUMMARY JUDGMENT
[ see first page and extracted highlights below  ] ItemID: 103227
29 pages
PDF
16 1998-06-26 GENDERM CORP.S REPLY MEMORANDUM IN SUPPORT OF MOTION TO DISMISS AND IN OPPOSITION TO MOTION FOR SUMMARY JUDGMENT
[ see first page and extracted highlights below  ] ItemID: 103226
26 pages
PDF
17 1998-06-26 DEFENDANT FORMER OUTSIDE DIRECTORS REPLY BRIEF IN FURTHER SUPPORT OF THEIR MOTION TO DISMISS
[ see first page and extracted highlights below  ] ItemID: 103225
26 pages
PDF
18 1998-06-26 DEFENDANT FORMER OUTSIDE DIRECTORS ANSWERING BRIEF IN OPPOSITION TO PLAINTIFFS MOTION FOR PARTIAL SUMMARY JUDGMENT
[ see first page and extracted highlights below  ] ItemID: 103224
21 pages
PDF
Total Documents: 18 documents , 429 pages
Price: $ 104.95


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1 . ORDER AND FINAL JUDGEMENT

EXTRACTED KEY WORDS
PARTIES
COURT
MEMBERS
STIPULATION
SCHEDULING ORDER
HEREBY
CAPACITY
PLAINTIFFS
ASSERT
ESCROW FUNDS
DISTRIBUTIONS
REPRESENTATIVES
ATTORNEYS
UNKNOWN
MERGER
SHAREHOLDERS
BERNSTEIN
GENDERM
AGREEMENT
COMPROMISE
ACCORDANCE
ADEQUATE
JUDGEMENT
CONSUMMATE
PROVISIONS
ADMISSION
PARTY
ACTS
WRONGDOING
             IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE                        ka

                                IN AND FOR NEW CASTLE COUNTY

       STUART TURNER and RICHARD A.
       BERNSTEIN,

                                   Plaintiffs,

                          V.

       JOEL E. BERNSTEIN, M.D., JAMES L.
       CURRIE, FRANK A. EHMANN,
       NEAL S. PENNE:YS,  M.D., JEREMY
       SILVERMAN, LAURA PEARL and
       GENDERM CORPORATION,

                                   Defendants.


                                 ORDER AND FINAL JUDG.MENT

              The Stipulation and Agreement of Compromise, Settlement and Release,

       dated December 8, 2000 (the "Stipulation"), of the above-captioned action (the

       "Action") and the settlement contemplated thereby (the "Settlement") having been

       presented at the Settlement Hearing on February 20, 2001, pursuant to the

       Scheduling Order entered herein on December 13, 2000 (the "Scheduling Order"),

       which Stipulation was joined and consented to by all parties to the Action which is

       incorporated herein by reference (along with the defined terms therein); and the

       Court having determined that notice of said hearing was given in accordance with

       the Scheduling Order to members of the class certified by the Court in an order

       dated December 13, 2000 (the "Class") and that said notice was adequate and

       sufficient; and  the parties having appeared by their attorneys of record; and the


.fh 15493.1\130891v1                              1



SNIPPETS:
  • STUART TURNER and RICHARD A. BERNSTEIN,
  • GENDERM CORPORATION,
  • The Stipulation and Agreement of Compromise, Settlement and Release,
  • Scheduling Order entered herein on December 13, 2000,
  • which Stipulation was joined and consented to by all parties to the Action which is
  • the Scheduling Order to members of the class certified by the Court in an order
  • attorneys for the respective parties having been heard in support of the Settlement,
  • the form and manner of the notice is hereby determined to
  • and it is further determined that all members of the Class are
  • bound by the Order and Final Judgment herein.
  • reasonable and adequate and in the best interests of the Class
  • directed to comply with and to consummate the Settlement in accordance with its
  • terms and provisions.
  • admission by any party herein that any acts of wrongdoing have been committed by
  • named in the action and against plaintiffs and all other members of the Class on the
  • contingent, unliquidated, unknown and unknowable claims, all claims arising from
  • the Merger and any agreements and disclosures relating thereto,
  • in connection with the administration of the Escrow Funds and/or the distribution
  • kinds of claim that any of the plaintiffs or Class members could assert in any
  • capacity, including in their capacity as shareholders of GenDerm, whether by or on
  • Action, and their affiliates, parents, subsidiaries, attorneys, representatives, heirs
  • distributions of Escrow Funds to former shareholders after the date hereof,

  • 2 . STIPULATION AND AGREEMENT OF COMPROMISE SETTLEMENT AND RELEASE

    EXTRACTED KEY WORDS
    FUND
    COURT
    STIPULATION
    PARTIES
    MERGER
    STOCKHOLDERS
    GENDERM
    ESCROW
    AGREEMENT
    DEFENDANTS
    ATTORNEYS
    CLASS COUNSEL
    PURSUANT
    PLAINTIFFS
    STUART TURNER
    CASH PAYMENT
    CLASS MEMBERS
    DISTRIBUTION
    BERNSTEIN
    PLUS POTENTIAL CONTINGENT
    PARAGRAPH
    CONNECTION
    COMPROMISE
    MEDICIS PHARMACEUTICAL CORPORATION
    ESCROW ACCOUNTS PURSUANT
    ADMINISTRATION
    PROVISIONS
    LITIGATION
    NET SETTLEMENT FUND
    
           IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
                                   IN AND FOR NEW CASTLE COUNTY
    
    STUART TURNER and RICHARD .A.
    BERNSTEIN,
                                                     >
                                      Plaintiffs,    )
                                                     >
                             V.                      1    C.A. No. 16190
    
    JOEL E. BERNSTEIN, M.D., JAMES L.                )                        ,-.
    CURRIE, FRANK A. EHMANN,                         >
    NEAL S. PENNEYS, M.D., JEREMY
    SILVERMAN, LAURA PEARL and                       i
    GENDERM CORPORATION,
                                                     ;
                                      Defendants.    >
    
                                   STIPULATION AND AGREEMENT
                        OF COMPROMISE:, SETTLEMENT AND RELEASE
    
            The parties to the above-ca:ptioned  civil action (the "Action"), by and through
    
    their attorneys, have entered into the following Stipulation and Agreement of
    
    Compromise, Settlement and Release ("Stipulation" or "Settlement Agreement"),
    
    subject to the approval of the Court:
    
            WHEREAS:
    
            A.          This Action arises out of the sale of the GenDerm Corporation
                                                                                     .,
    ("GenDerm") to  Medicis Pharmaceutical Corporation ("Medicis") in 1997 and/or
    
    other alleged wrongful conduct engaged in by the defendants.             The sale was
    
    effectuated by means of a merger of GenDerm into Medicis on or about December 3,
    
    1997 (the "Merger") pursuant to an Agreement of Merger dated as of December 1,
    
    1997 (the "Merger Agreement"). In the Merger, the shares of GenDerm held by
    
    15493.1\127011Vl
    
    
    
    GenDerm's stockholders were converted into the right to receive a cash payment of
    
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • GENDERM CORPORATION,
  • The parties to the above-ca:ptioned civil action,
  • Compromise, Settlement and Release ("Stipulation" or "Settlement Agreement"),
  • to Medicis Pharmaceutical Corporation in 1997 and/or
  • effectuated by means of a merger of GenDerm into Medicis on or about December 3,
  • 1997 pursuant to an Agreement of Merger dated as of December 1,
  • GenDerm's stockholders were converted into the right to receive a cash payment of
  • were placed in escrow accounts pursuant to the Merger Agreement (the "Escrow
  • plus potential contingent "earnout" payments of up to $1.44 per share.
  • defendants in the Action served and continue to serve as Target Stockholder
  • referenced in paragraph A herein, and are involved in the administration of other
  • On February 18, 1998, Richard Bernstein and Stuart Turner, common
  • stockholders of GenDerm prior to the Merger,
  • denied in part defendants' motions to dismiss plaintiffs' complaint,
  • substantial risks of continued litigation; the probability of success on the merits
  • settle their claims and those of the Class upon the terms and provisions hereinafter
  • in connection with the administration of the Escrow Funds and/or the distribution
  • kinds of claim that any of the plaintiffs or Class members could assert in any
  • Action and their affiliates, parents, subsidiaries, attorneys, representatives, heirs
  • CREATION 01F THE SETTLEMENT FUND
  • No distribution shall be made to Class Counsel or Class
  • A pro rata share of the Net Settlement Fund shall be allocated

  • 3 . LETTER

    EXTRACTED KEY WORDS
    PLAINTIFFS
    COURT
    STRINE
    HONORABLE LEO
    AFFILIATE
    GENDERM STOCKHOLDERS
    FRONTENAC
    CLASS CERTIFICATION
    DEFS
    LTR
    ACCORDING
    SETTLEMENT
    SHARES
    INDEMNIFICATION OBLIGATIONS
    METRO MOBILE
    FRONTENAC ENTITIES
    FORMER GENDERM STOCKHOLDERS
    FRONTENAC ENTITY
    BERNSTEIN
    CONNECTION
    RESPECTFULLY REQUEST
    MERGER AGREEMENT
    DT-8
    INVESTORS
    VENTURE PARTNERS
    SECURITIES
    INDEMNIFICATION LIABILITY
    MARVIN RAPAPORT
    PARTNERSHIP
    
                                                       PRIcKETT,  JONES & ELLIOTT
                                                         1310 KING STREET, Box 1328
                                                       WILMINGTON, DELAWARE  19899
                                                              TEL: (302)888-6500
                                                              FAXz(302)658-8111
                                                            http://www.prickett.com
    
    Write's Direct Dial: (302) 888-6525
    Writer's  `Telecopy Number:  (302) 888.6333
    Writer's :E-Mail Address:  RAEbwn@prickett.con~
                                                               October 19, 2000
    
    
    
                                                                                       BY HAND DELIVEIRY
    
             The Honorable Leo E. Strine, Jr.
             Court of Chancery
             Public Building
             Wilmington, Delaware 198Ol
    
                         RE:          Turner v.&Bernstein.  et al.
                                      Del. Ch.. C.A. No. 16190
    
             Dear Vice Chancellor Strine:
    
                         This letter constitutes plaintiffs' response to the dlefendants'  October 11,
    
             letter to Your Honor ("Defs. Ltr.") in connection with th,e form of class certification
    
             order in the above referenced action.
    
                         Although I indicated to Your Honor during the office conference on October
    
              16  thalt plaintiffs were content to defer a decision on the class definition issue
    
             pending the outcome of settlement efforts, plaintiffs have now concluded that  .the
    
             uncertainty about who is in our class needs to be resolved by Your Honor before we
    
             can agree to any settlement of this action. Accordingly, we respectfully request that
    
             Your Honor decide the issues with respect to the form of class certification order
    
             framed by our September 27 letter, defendants' October 11 letter and this letter.
    
    
    
    
    
    SNIPPETS:
  • The Honorable Leo E. Strine,
  • Dear Vice Chancellor Strine:
  • This letter constitutes plaintiffs' response to the dlefendants' October 11,
  • letter to Your Honor ("Defs.
  • Ltr.") in connection with th,e form of class certification
  • can agree to any settlement of this action.
  • Your Honor decide the issues with respect to the form of class certification order
  • The defendants' o:nly objection to plaintiffs' form of class certification order is
  • that twenty-one former GenDerm stockholders identified on Exhibit I to defendants'
  • This objection raises two basic issues for the Court:
  • "affiliate" used in plaintiffs' complaint and plaintiffs' class certification motion
  • attached to the Metro Mobile opinion, which is attached hereto as Exhibit A).
  • immediate and remote, who held shares, options -or
  • definit:ion of the word "affiliate" in the corporate and securities context.
  • first definition in Section 1 of the GenDerm/Medicis merger agreement contains the
  • According to defendants, "plaintiffs concede
  • Dr. Bernstein controlled the shares held by his immedial.te family members.
  • Wind Point, DT-8 and Marvin Rapaport
  • The defendants imply that since plaintiffs excluded Frontenac entities and Essex
  • Venture Partners (previously known as Hayes & Griffith Venture Partnership),
  • stockholder who received sh.ares from a Frontenac entity falls within defendants'
  • indemnification obligations .themselves to any defendant in this action.
  • GenDerm stockholders were investors in the Frontenac entities that may
  • Potential indirect adverse impact from hypothetical indemnification liability does
  • Moreover, contrary to defendants' contentions, the Frontenac Venture V list does not state
  • Septenaber 27, 2000 letter to the Court, plaintiffs respectfully request that the

  • 4 . MEMORANDUM OPINION

    EXTRACTED KEY WORDS
    PLAINTIFFS
    COURT
    CLASS CERTIFICATION
    MOTION
    GENDERM
    FACTS
    BERNSTEIN
    CLASS MEMBERS
    MATERIAL FACTS
    COUNSEL
    OPINION
    CHANCERY
    VICE CHANCELLOR
    DAMAGES
    STOCKHOLDERS
    PROPOSED CLASS
    FEDERAL RULE
    AFFIDAVITS
    SUMMARY JUDGMENT
    DIRECTORS
    LITIGATION
    OPINION RESOLVES
    FIDUCIARY DUTIES
    COMMUNICATIONS
    SHAREHOLDERS
    ADJUDICATION
    IDENTICAL7
    PREJUDICE
    ATTORNEYS
    
          IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                         IN AND FOR NEW CASTLE COUNTY
    
    
    STUART TURNER and RICHARD A.                >
    BERNSTEIN,                                  >
                                                >
                       Plaintiffs.              >
                                                >
          .>v.                                  >     Civil Action No. 16190
    
    JOEL E. BERNSTEIN, M.D.,
    JAMES  L. CURRIE, FRANK A..
    EHMANN, NEAL S. PENNEYS, M.D.,
    JEREMY SILVERMAN and
    LAURA PEARL,
    
                       Defendants.
    
    
                               M E M O R A N D U M   O P I N I O N   :5  cn
                                                                     $          4
                              Date Submitted: August 4, 2000
                              Date Decided: August  11, 2000
    
    Ronald A. Brown, Jr., Esquire, of PRICKETT, JONES & ELLIOTT, Wilmington,
    Delaware, Attorney for Plaintiff1
    
    Gregory V.  .Varallo, Esquire and Russell C. Silberglied, Esquire, of RICHARDS,
    LAYTON & FINGER, Wilmington, Delaware; OF COUNSEL: Professor Martin H.
    Redish, Mic.hael S. Poulos, and Lucinda J. Bach, Esquires, of PIPER MARBURY
    RUDNICK & WOLFE, Chicago, Illinois, Attorneys for Defendants.
    
    
    STRINE:, Vice Chancellor
    
    
    
            This opinion resolves a hotly-contested motion for class certification
    
    in a case alleging that the former directors of GenDerm Corporation failed to
    
    disclose all the material facts necessary to permit the GenDerm stockholders
    
    to make an informed judgment whether to accept the consideration offered
    
    in a Dmecember  1997 merger with a wholly-owned subsidiary of Medicis
    
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • Gregory V. .Varallo, Esquire and Russell C. Silberglied, Esquire, of RICHARDS, LAYTON &
  • This opinion resolves a hotly-contested motion for class certification
  • in a case alleging that the former directors of GenDerm Corporation failed to
  • disclose all the material facts necessary to permit the GenDerm stockholders
  • I resolve the motion in favor of the plaintiffs.
  • and fact common to the entire "Proposed Class" and because there are no
  • summary judgment has been entered against the defendant-directors on the
  • solicited affidavits from potential class members stating that those potential
  • class members did not wish to participate in this lawsuit.
  • As I i-idicated in 111 re Gaylord Container Corporation Shareholders Litig.,
  • litigation arising out of the Merger in which Medicis acquired GenDerm
  • Plaintiffs Stuart Turner and Richard A. Bernstein now press
  • their motion to certify a class of the former stockholders of GenDerm
  • Because the relief they seek is monetary damages only and the only declaratory relief they
  • `This court, per Vice Chancellor Jacobs, ruled on those motions on
  • The affidavits are virtually identical7 and state in part that:
  • Some of the affidavits are slightly diftirent in wording, but every version appears to be a
  • had breached their fiduciary duties by failing to disclose all the material
  • under Federal Rule of Civil Procedure 23after a decision on the merits
  • in In ye Mobile Communications
  • stock plus attorneys' fees in exchange for releasing state and federal claims
  • realistic chance of inconsistent judgments and no chance of prejudice to
  • the risk exists that adjudication of a single shareholder's claim

  • 5 . PLAINTIFFS RESPONSE TO DEFENDANTS JULY 28 2000 SURREPLY BRIEF

    EXTRACTED KEY WORDS
    COURT
    PLAINTIFFS
    DELAWARE
    CLASS CERTIFICATION
    CLASS MEMBERS
    AFFIDAVITS
    RESPONSE
    CLASS ACTION
    STOCKHOLDERS
    SRB
    SHARES
    JUDGEMENT
    GENDERM
    SOLICITATION
    OPT-OUT
    AFFILIATES
    SUMMARY JUDGMENT DECISION
    COURT OIF CHANCERY
    ADEQUATE CLASS REPRESENTATIVES
    ACCORDING
    OBLIGATION
    COMPLAINT
    CONFLICT
    CLASS DEFINITION
    AWARD RELIEF
    EVIDENCE
    DIRECTORS
    FIDUCIARY DUTIES
    MATERIAL FACTS
    
           IN THE COURT OIF CHANCERY OF THE STATE OF DELAWARE
    
                              IN AND FOR NEW CASTLE COUNTY
    
    STUART TURNER and RICHARD A.
    BERNSTIEIN,
    
                            Plaintiffs,
    
                    V.                           i           C.A. No.: 16190
    
    JOEL E. 13ERNSTEIN,  M.D.,                   i                               .->
    JAMES L. CURRIE, FRANK A.                                                 ^  t
                                                                              !G?;;
    EHMANN,  NEAL S. PENhJEYS,  M.D.,                                     ;:.a ; ;
                                                 ;                        +*  1
                                                                          :  ?
    JEREMY SILVERMAN and                                                  I :: ,z
                                                                          --,  _
    LAURA PEARL                                  ;                        :-_._ 1
                                                                         k.. :
                                                                         _
                            Defendants.          ;                       I<:. "
                                                                         c/2;.;
                                                                         s'.j i
                                                                         --~`)_Ii
                           PLAINTIFFS' RESPONSE TO DEFENDANTS'
                                 JULY  28,200O SURREPLY BRIEF
    
    
    
    
                                           PRICKETT, JONES & ELLIOTT
                                           Ronald A. Brown, Jr.
                                           1310 King Street
                                           P.O. Box 1328
                                           Wilmington, Delaware 19899
                                           (302) 888-6500
                                           Attorneys for Plaintiffs
    
    
    
    
    Dated: August 1, 2000
    
    
    
    
    
    
    SNIPPETS:
  • IN THE COURT OIF CHANCERY OF THE STATE OF DELAWARE
  • PLAINTIFFS' RESPONSE TO DEFENDANTS'
  • PLAINTIFFS' M'OTION FOR CLASS CERTIFICATION SHOULD BE
  • The Summary Judgment Decision Does Not Preclude Class
  • The Defendants Cannot Complain About Timing They
  • Plaintiffs are Adequate Class Representatives.
  • Affildavits From Class Members Under the Circumstances
  • To The Extent That They Are Considered, The Affidavits

  • 6 . DEFENDANTS SURREPLY BRIEF IN OPOSITION TO MOTION FOR CLASS CERTIFICATION

    EXTRACTED KEY WORDS
    DEFENDANTS
    COURT
    CLASS CERTIFICATION
    MOTION
    DOCTRINE
    DELAWARE
    SUMMARY JUDGMENT
    STOCKHOLDERS
    CIR
    CLASS MEMBERS
    PUTATIVE CLASS
    CLASS ACTIONS
    MERITS
    CHANCERY
    OPPOSITION
    CONFLICTS
    OPT-OUT CLASS
    AMERICAN AIRLINES
    PATENT MISREPRESENTATIONS
    PROPOSITIONS
    AFFIDAVITS
    SUBSECTION
    AUTHORITIES
    MANDATORY
    MOREOVER
    DETERMINATION
    PLAINTIFFS ASSERT
    GENDERM STOCK
    CALCULATION
    
              IN THE COURT OF CHANCERY FOR THE STATE OF DELAWARE
    
                               IN AND FOR NEW CASTLE COUNTY                     ::    .)
    
    STUART TURNER and RICHARD A.
    BERNSTEIN,
    
                               Plaintiffs,
    
                        V.                     ;           Civil ActionNo. 16190
    
     JOEL I!. BERNSTEIN, M.D.,                 ;
     JAMES L. CURRIE, FRANK A. EHMANN, )
    NEAL S. PENNEYS, M.D., JEREMY
     SILVERMAN, and LAURA PEARL,               ;
    
                               Defendants.
    
    
                      DEFENDANTS' SURREPLY BRIEF IN OPPOSITION TO
                      PLAINTIFFS' MOTION FOR CLASS CERTIFICATION
    
    
    OF COUNSEL:                                Gregory V. Varallo
                                               Russell C. Silberglied
    Michael S. Poulos                          Dominick T. Gattuso
    Lucinda J. Bach                            Richards, Layton & Finger, P.A.
    Piper Marbury Rudnick & Wolfe LLP          One Rodney Square
    203 North LaSalle Street                   P.O. Box 551
    Suite 1800                                 Wilmington, Delaware 19899
    Chicago, Illinois 60601                    (302) 658-6541
    (312) 368-4000                                  Attorneys for Defendants
    
    
    Dated: July 28, 2000
    
    
    
    
    
    
    
    
    
    RLFl-2187387-l
    
    
    
                                               TABLE OF CONTENTS
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY FOR THE STATE OF DELAWARE
  • DEFENDANTS' SURREPLY BRIEF IN OPPOSITION TO
  • PLAINTIFFS' MOTION FOR CLASS CERTIFICATION
  • TABLE OF AUTHORITIES ii
  • The Doctrine On Which Defendants Rely Is Set Forth ln The Cases
  • The Delaware Courts Have Not Spoken To The Issue Raised By
  • Plaintiffs Chose To Proceed With Their Summary Judgment Motion
  • Prior To Obtaining A Decision On Class Certification.
  • AL. Defendants May Challenge The Putative Class Through The Use Of
  • Riddled With Conflicts That Prevent Certification.
  • 555 lF.2d 270 (10th Cir.
  • &&et-ts v. American Airlines.
  • Developments in the Law -- Class Actions
  • propositions advanced, as confirmed by both judicial decisions and secondary authority.
  • fact that it is plaintiffs who purposefilly ignore the law and seek certification of a
  • class action can precede a determination on class certification.
  • plaintiffs' charge of "patent misrepresentations" of the law by defendants
  • Clourt that there are no Delaware decisions deciding the issue of whether a merits
  • Plaintiffs assert that, to the contrary, "there are numerous Delaware cases directly contrary
  • class members can take advantage of that result
  • the use of affidavits from putative class members to
  • Moreover, if defendants were prohibited from speaking with the potential class members,
  • Plaintiffs assert that lthe "class" consists of 128 stockholders who owned 4,249,997
  • shares of GenDerm stock.
  • `Yet this calculation includes numerous stockholders who even
  • subsection is inapplicable for the reasons discussed in defendants'
  • Plaintiffs' efforts to avoid an opt-out class is rooted in their desire to artificially

  • 7 . PLAINTIFFS REPLY BRIEF IN SUPPORT OF MOTION FOR CLASSS CERTIFICATION

    EXTRACTED KEY WORDS
    CLASS CERTIFICATION
    COURT
    PLAINTIFFS
    MOTION
    DELAWARE
    CLASS ACTION
    BERNSTEIN
    AFFIDAVITS
    CLASS MEMBERS
    DEL
    STOCKHOLDERS
    SUPPORT
    SUMMARY JUDGMENT
    CIR
    PEARL
    COMMUNICATIONS
    POTENTIAL CLASS
    PRECLUDE CLASS
    DAMAGE AWARD
    DISCLOSURE CLAIMS
    PARTIAL SUMMARY JUDGMENT
    PREJUDICE
    COMPLAINT
    ACCORDING
    REPRESENTATIVES
    ELLIOTT
    KING STREET
    WILMINGTON
    ATTORNEYS
    
           IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                             IN AND FOR NEW CASTLE COUNTY
    
    STUART TURNER and RICHARD A.                )
    BERNSTEIN,
                                                i
                           Plaintiffs,
                                                i
                    V.                                      C.A. No.: 16190
                                                i
    JOEL E. BERNSTEIN, M.D.,
    JAMES L. CURRIE, FRANK A.                   1
    EHMANN, NEAL S. PENNEYS, M.D.,              )
    JEREMY SILVERMAN and
    LAURA PEARL                                 i
    
                           Defendants.
    
    
                           PLAINTIFFS'  IREPLY BRIEF IN SUPPORT
                      OF THEIR MOTION FOR CLASS CERTIFICATION
    
    
    
    
                                          PRICKETT, JONES & ELLIOTT
                                          Ronald A. Brown, Jr.
                                          1310 King Street
                                          P.O. Box 1328
                                          Wilmington, Delaware 19899
                                          (302) 888-6500
                                          Attorneys for Plaintiffs
    
    
    
    
    Dated: July 24, 2000
    
    
    
    
    
    
    
       15493.1\116964vl
    
    
    
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • BERNSTEIN,
  • JEREMY SILVERMAN and LAURA PEARL
  • PLAINTIFFS' IREPLY BRIEF IN SUPPORT
  • OF THEIR MOTION FOR CLASS CERTIFICATION
  • PRICKETT, JONES & ELLIOTT
  • 1310 King Street
  • Wilmington, Delaware 19899
  • Attorneys for Plaintiffs
  • PLAINTIFFS' MOTION:FOR CLASS CERTIFICATION SHOULD BE GRANTED.
  • The Fact That Partial Summary Judgment Was Granted Does
  • Partial Summary Judgment Does Not Preclude Class
  • The Federal Cases Relied on By Defendants Do Not
  • Plaintiffs are Adequate Class Representatives.
  • Defendants Are Ignoring The Definition Of The Class The Vast Majority Of The Affidavits
  • Class Members,
  • Disclosure Claims Can Be Certified Under Rule 23..........23
  • Arnold v. Society for Savings Bancorn, Inc., Del.
  • 555 F.2d 270 (10th Cir.
  • In Re Mobile Communications, Del.

  • 8 . DEFENDANTS ANSWERING BRIEF IN OPPOSITION TO PLAINTIFFS MOTION FOR CLASS CERTIFICATION

    EXTRACTED KEY WORDS
    COURT
    MOTION
    PLAINTIFFS
    CHANCERY
    CLASS ACTION
    DEFENDANTS
    DEL
    SUMMARY JUDGMENT
    CLASS MEMBERS
    STOCKHOLDERS
    CIR
    SUBSECTION
    LAURA PEARL
    REMEDY
    COUNSEL
    STUART TURNER
    POTENTIAL CLASS MEMBERS
    MONEY DAMAGES
    SILVERMAN
    AFFIDAVITS
    ANTAGONISM
    PROPOSED CLASS
    REPRESENTATION
    FORMER STOCKHOLDERS
    CLASS-BASED REMEDY
    FEDERAL RULE
    PIPER MARBURY RUDNICK
    WOLFE LLP
    AUTHORITIES
    
                    `IN THE COURT OF CHANCERY FOR THE STATE  OF;ELAW&Jj
                                                                                   .  _
                                    IN AND FOR NEW CASTLE COUNTY
                                                                                                 /
    
    STUART TURNER and RICHARD A.
    BERNSTEIN,                                      1
    
                                     Plaintiffs,    1
    
                       V.                           t       Civil Action No. 16190 3
    
    JOEL E. BERNSTEIN, M.D.,                        i
    JAMES L. CURRIE, FRANK: A. EHMANN, )
    NEAL S. PENNEY&  M.D., JEREMY                   >
    SILVERMAN, and LAURA PEARL,
                                                    ;                                                  
                                    Defendants.     1
    
    
                       DEFENDANTS' ANSWERING BRIEF IN OPPOSITION TO                        `-         `-
                             PLAINTIFF'S MOTION FOR CLASS CERTIFICATION
                     -
    
    
                                                         Gregory V. Varallo
                                                         Russell C. Silberglied
                                                         RICHARDS, LAYTON  8r. FINGER
                                                         One Rodney Square
                                                         P.O. Box 551
                                                         Wilmington, Delaware 19899
                                                         (302) 658-6541
                                                          Attorneys for Defendants
    
    
    Of Counsel.:
    
    Michael S. E'oulos
    Lucinda J. Bach
    PIPER MARBURY RUDNICK  & WOLFE LLP
    203 North LaSalle Street
    Suite 1800
    Chicago, Illinois 60601
    (3 12) 368-4000
    
    
    
                                                                                                   
    
    
    SNIPPETS:
  • `IN THE COURT OF CHANCERY FOR THE STATE OF;ELAW&Jj
  • STUART TURNER and RICHARD A.
  • SILVERMAN, and LAURA PEARL,
  • Of Counsel.:
  • PIPER MARBURY RUDNICK & WOLFE LLP
  • TABLE OF AUTHORITIES.
  • Plaintiffs' Motion for Class Certification.
  • THE COURT'S PRIOR JUDGMENT ON THE MERITS PRECLUDES CERTIFICATION OF THIS SlJIT AS A CLASS
  • The Sole Purpose of the Proposed Class is the Pursuit of Money Damages.
  • The Class Cannot Ese Cert fied After a Grant of Summary Judgment.
  • A Significant Number of the Potential Class Members Object to the
  • and the Resulting Antagonism of Interests Defeats
  • plaintiffs Claim to Class .Representation.
  • `The Obligation of Over 20 Stockholders to Indemnify Certain Defendant-Directors Creates
  • THE ONLY APPROPRIATE CLASS-BASED REMEDY IS AN EQUITABLE ONE OUTSIDE OF RULE 23..
  • RULE 23 CLASS CERTIFICATION IS ONLY APPROPRIATE, IF AT ALL, UNDER SUBSECTION.

  • 9 . MEMORANDUM OPINION

    EXTRACTED KEY WORDS
    GENDERM
    MERGER
    STOCKHOLDERS
    DEFENDANTS
    BERNSTEIN
    DIRECTORS
    MATERIALS
    MEDICIS
    RICHARD
    COURT
    TURNER
    SUMMARY JUDGMENT
    DELAWARE
    MERGER CONSIDERATION
    DISCLOSURE
    VICE CHANCELLOR
    MATERIAL FACTS
    FIDUCIARY DUTIES
    TRANSACTION
    FIDUCIARY DUTY
    FINANCIALS
    EQUITABLE ACTION
    CONNECTION
    LITIGATION
    SHAREHOLDERS
    TRANSMITTAI
    PLAINTIFFS ALLEGE
    INVESTMENT
    FINANCIAL STATEMENTS
    
          IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                         IN AND FOR NEW CASTLE COUNTY
    
    
    STUART TURNER and RICHARD A.                    >
    BERNSTEIN,                                      >
                                                    >
                       Plaintiffs,                  1>
          V.                                        )     Civil Action No. 16190
                                                    )
    JOEL E. BERNSTEIN, M.D.,                        )
    JAMES L. CURRIE, FRANK A.                       1
    EHMANN, NEAL S. PENNEYS M.D.,                   >
    JEREMY SILVERMAN and                            >
    LAURA PEARL,                                    >>
                       Defendants.                  >
    
                               MEMORANDUM OPINION
    
                              Date Submitted: May 15, 2000
                                Date Decided: June 6,200O
    
    Ronald A. Brown, Jr., Esquire and James L. Holzrnan, Esquire of PRICKETT,
    JONES & ELLIOTT, Wilmington, Delaware, Attorneys for Plaintiff.
    
    Gregory V. Varallo, Esquire and Russell C. Silberglied, Esquire, of RICHARDS,
    LAYTON & FINGER, Wilmington, Delaware; OF COUNSEL: Michael S. Poulos,
    `Esquire and Lucinda J. Bach, Esquire, of PIPER MARBURY  RUDNICK & WOLFE,
    Chicago, Illinois, Attorneys for Defendants.
    
    
    
    
    STRINE, Vice Chancellor
    
    
    
                 This opinion addresses a motion for partial summary judgment by
    
           plaintiffs Stuart Turner and Richard A. Bernstein (collectively, the
    
           "plaintiffs") against the former directors of GenDerm Corporation. The
    
          plaintiffs allege that the GenDerm directors breached their fiduciary duties
    
          by failing to provide the GenDerm stockholders with information material to
    
          the decision whether to approve a merger of GenDerm into a wholly-owned
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • This opinion addresses a motion for partial summary judgment by
  • "plaintiffs") against the former directors of GenDerm Corporation.
  • plaintiffs allege that the GenDerm directors breached their fiduciary duties
  • by failing to provide the GenDerm stockholders with information material to
  • subsidiary of Medicis Pharmaceutical Corporation in December 1997.
  • decision whether to accept the consideration offered in the Medicis merger
  • and not to equitable actions for breach of fiduciary duty.
  • Dr. Joel E. Bernstein founded GenDerm
  • Dr. Bernstein is not related to plaintiff Richard
  • transaction that would involve the sale of the company.
  • ' Given the procedural posture of this case, I set forth the defendants' version of the facts
  • had successfully encouraged plaintiffs Turner and Richard Bernstein,
  • This eventually sparked litigation by DiPrima against the company.
  • materials discussing GenDerm's financial conditions and prospects (the
  • The plaintiffs challenged the Euroderma transaction in this lawsuit, but that count was
  • As GenDerm explained to its shareholders,
  • provided to the stockholders in connection with the vote on the merger.
  • Nor was this lack of disclosure counterbalanced by any prior
  • informed investment decision and that their knowing decision to accept the
  • On a motion for summary judgment the Court must treat all facts in the light most favorable
  • Z%ey contend that theplaint@ received GenDerm `s most recent financial statements shortIy
  • Lastly, the defendants point out that although the Letter of TransmittaI invited the
  • there was no reason to pierce the privilege unless the defendants could show that DiPrima had
  • 19951996 financials were adequate is contradicted by the Seller's Report
  • $ 262, not an equitable action.

  • 10 . DEFENDANTS REPLY BRIEF IN FURTHER SUPPORT OF MOTION TO COMPEL DISCOVERY

    EXTRACTED KEY WORDS
    COURT
    DEFENDANTS
    PLAINTIFFS
    ATTORNEY-CLIENT PRIVILEGE
    REQUESTS
    COUNSEL
    CANTOR
    CFLP
    MOTION
    RESPONSES
    COMPEL
    CHANCERY
    ADMISSION
    INTERROGATORIES
    CFI
    SHAREHOLDERS
    MDC
    DEALING DEFENSE
    FIRST SET
    FITZGERALD
    SUPPLEMENT
    ALLEGATIONS
    CHANCERY RULE
    AGREEMENTS
    BERNSTEIN
    LASALLE STREET
    CONFIDENTIALITY
    COMPETITIVE THREAT
    REDACTED INFORMATION
    
                  IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
                                 IN AND FOR NEW CASTLE COUNTY
    
    STUART TURNER and RICHARD A.
    BERNSTEIN,
                                                                                    __
                                  Plaintiffs,                                  y; i  `.  -1
                    V.                                  C.A. No.: 16190                        :     `:
    
    JOEL E. BERNSTEIN, M.D.                                                               -.7
    JAMES L. CURRIE, FRANK A.                                                  ,
    EHMANN, NEAL S. PENNEY&  M.D.
    JEREMY SILVERMAN and
    LAURA PEARL
    
                                  Defendants.
    
    
                    DEFENDANTS' REPLY BRIEF IN FURTHER SUPPORT OF
                                 MOTION TO COMPEL DISCOVERY
    
    
                                                 Gregory V. Varallo
                                                 Russell C. Silberglied
                                                 RICHARDS, LAYTON  & FINGER, P.A.
                                                 One Rodney Square
                                                 P.O. Box 551
                                                 Wilmington, Delaware 19899
                                                 (302) 658-6541
    
                                                 Attorneys for Defendants
    
    OF COUNSEL:
    
    Michael S. Poulos
    Lucinda J. Bach
    PJPER MARBURY RUDNICK & WOLFE, LLP
    203 N. LaSalle Street
    Suite 1800
    Chicago, Jllinois  6060 1
    (3 12) 368-4000
    
    Dated: May  26,200O
    
    
    
                                               TABLE OF CONTENTS
    
    TABLE OF AUTHORITIES . , . . . . . . . . . . . . . . . . . . . . . . . .                      .  . 
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • STUART TURNER and RICHARD A. BERNSTEIN,
  • MOTION TO COMPEL DISCOVERY
  • OF COUNSEL:
  • 203 N. LaSalle Street Suite 1800 Chicago,
  • Plaintiffs Waived the Attorney-Client Privilege By Claiming to Be Uninformed Shareholders.
  • Defendants Were Deprived of Relevant,
  • The court in Remington Arms reached the same conclusion,
  • Plaintiffs' attempt to distinguish Fitzgerald v. Cantor,
  • itself from discovery by an adverse party who challenges that position.").
  • interrogatories and requests for admission; Defendants Cantor's and CFI's answers
  • to CFLP's interrogatories and requests for admission;
  • Cantor and CFI, and grant in part and deny in part CFLP's motion as it applies to
  • CFLP served all five defendants in this action with its First Set
  • of Chancery Rule 26set forth in the request that relate to statements or opinions of
  • Fisher's responses are inadequate even though CFLP served all
  • These filings contained allegations relating to the same topics as the
  • duty, under Court of Chancery Rule 26, to supplement their discovery responses.
  • based on information which they can readily obtain from MDC.
  • versions of the agreements underlying these competitive deals.
  • to disclose the redacted information because it is relevant to MDC's course of dealing
  • confidential information that is not relevant to its course of dealing defense;
  • The redacted information regarding "thirdparty numerical specifications" is relevant to the
  • Confidentiality Agreement the parties to this dispute entered into resolves any concern

  • 11 . DEFENDANTS OPENING BRIEF IN SUPPORT OF MOTION TO COMPEL DISCOVERY

    EXTRACTED KEY WORDS
    PLAINTIFFS
    DEL
    ATTORNEY-CLIENT
    COURT
    COUNSEL
    PRIVILEGE
    WAIVER
    PERMIT
    DEPOSITIONS
    COMMUNICATIONS
    ASSERT
    UNDERSTANDING
    DELAWARE
    RENEWED MOTION
    FITZGERALD
    SUPER
    APPRAISAL RIGHTS
    CORN
    FIRE
    PARTY
    EXECUTLON
    LITIGATION
    BERNSTEIN
    FRANK
    COMPEL
    FACTUAL BACKGROUND
    HOECHST CELANESE
    SUPR
    TACKETT
    
              IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
                               IN AND FOR NEW CASTLE COUNTY
    
    STUART TURNER and RICHARD A.               1
    BERNSTEIN,
    
                                Plaintiffs,
    
                  V                                        CA. No.: 16190
    
    JOEL E. BERNSTEIN, M.D.
    JAMES L. CURRIE, FRANK A.
    EHMANN, NEAL S. PENNEY& M.D
    JEREMY SILVERMAN and
    LAURA PEARL
                                               )
                                 Defendants.  )
    
    
                         DEFENDANTS' OPENING BRIEF IN SUPPORT OF
                               MOTION TO COMPEL DISCOVERY
    
    
    
                                                    Gregory V. Varallo
                                                    Russell C. Silberglied
                                                    RICHARDS, LAYTON  & FINGER, P.A.
                                                    One Rodney Square
                                                    P.O. Box 551
                                                    Wilmington, Delaware 19899
                                                    (302) 658-6541
    
                                                    Attorneys for Defendants
    
    OF COUNSEL:
    
    Michael S  Poulos
    Lucinda J. Bach
    PIPER MARBURY RUDNICK & WOLFE, LLP
    203 N. LaSalle Street
    Suite 1800
    Chicago, Illinois 60601
    (3 12) 368-4000
    
    Dated: May 15, 2000
    
    
    
                                     TABLE OF CONTENTS
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • BERNSTEIN,
  • DEFENDANTS' OPENING BRIEF IN SUPPORT OF
  • MOTION TO COMPEL DISCOVERY
  • FACTUAL BACKGROUND..
  • PLAINTIFFS HAVE IMPLIEDLY WAIVED THE ATTORNEY-CLIENT I'RIVILEGE AS TO ALL COMMUNICATIONS
  • Fitzgerald v. Cantor, Del.
  • Hercules Inc. v. Exxon Corn,
  • Supr.
  • Tackett v.
  • State Farm Fire & Cas.
  • Super, 712 A.2d 457,
  • Supplememal Memorandum in Opposition to Plaintiffs' Renewed Motion for Partial Summary
  • Plaintiffs, Stuart Turner and Richard Bernstein, and their co-counsel, Frank DiPrima, prior
  • Judgment, The depositions were scheduled for April 27 and May 4,200O.
  • Because it was clear that issues of attorney-client privilege would arise in the
  • Defendants sought guidance on the "at-issue" waiver of the
  • numerous disagreements between counsel as to the scope and interpretation of the Court's
  • PLAlNTl FFS HAVE 1MPLlEDLY WAIVED THE ATTORN EY-CLIE:NT PRIVI~LEGE AS TO ALL COMMUNICATIONS
  • Hoechst Celanese Corp. v. National Union
  • This exception is invoked when the party holding the privilege waives
  • it in one of two ways: the party "injects the communication themselves into the litigation;
  • Plaintiffs assert that their express waivers of appraisal rights were ineffective because
  • This Court "cannot permit party to make bare,
  • privilege as a barrier to the better understanding of the factual situation."
  • waiver doctrine in analogous commercial and corporate settings, For example, in Fitzgerald v.

  • 12 . DEFENDANTS SUPPLEMENTAL MEMORANDUM IN OPPOSITION TO PLAINTIFFS RENEWED MOTION FOR PARTIAL SUMMARY JUDGMENT

    EXTRACTED KEY WORDS
    GENDERM
    MEDICIS
    TRANSACTION
    COUNSEL
    BERNSTEIN
    MERGER
    SUMMARY JUDGMENT
    DIPRIMA
    DEL
    APPRAISAL RIGHTS
    SHAREHOLDERS
    MERGER CONSIDERATION
    DISCLOSURE
    DEFENDANTS
    WAIVERS
    STOCKHOLDERS
    DELAWARE LAW
    BERNSTEIN AFF
    MERGER AGREEMENT
    SUPPLEMENTAL MEMORANDUM
    PARTIAL SUMMARY JUDGMENT
    GENDERM PRIOR
    MATERIAL FACT
    FINANCIALS
    RICHARD BERNSTEIN
    RAB
    SELL GENDERM
    REPRESENTING
    PIETRANGELLO
    
                                                                                 1
    
    
    
    
    
              IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE                           0
                                                                                          /?
                                IN AND FOR NEW CASTLE COUNTY
    STUART TURNER and RICHARD A                  >
    BERNSTEIN,                                   5
                                 Plaintiffs,     >;
                  V.                                          C.A. No.: 16190
    
    JOEL E. BERNSTEIN, M.D.                      ;
    JAMES L. CURFUE,  FRANK A.
    EHMANN, NEAL S. PENNEYS, M.D                 ;
    JEREMY !3ILVERMAN  and
    LAURA  P:EARL                                1
    
                                  Defendants.
    
    
          DEFENDANTS' SUPPLEMENTAL MEMORANDUM IN OPPOSITION TO
        PLAINTIFFS' RENEWED MOTION FOR PARTIAL SUMMARY JUDGMENT
    
    
    
                                                       Gregory V. Varallo
                                                       Russell C. Silberglied
                                                       RICHARDS, LAYTON  & FINGER P.A.
                                                       One Rodney Square
                                                       P.O. Box 551
                                                       Wilmington, Delaware 19899
                                                       (302) 658-6541
    
                                                       Attorneys for Defendants
    
    OF COUNSEL:
    
    Michael S. Poulos
    Lucinda J. Bach
    PIPER MARBURY RUDNICK & WOLFE, LLP
    203 N. LaSalle Street
    Suite 1800
    Chicago, Illinois 6060 1
    (3 12) 368-4000
    
    Dated: May 15, 2000
    
    SNIPPETS:
  • DEFENDANTS' SUPPLEMENTAL MEMORANDUM IN OPPOSITION TO PLAINTIFFS' RENEWED MOTION FOR PARTIAL
  • OF COUNSEL:
  • Efforts to Sell GenDerm.
  • The Medicis Transaction
  • Plaintiffs' Information About GenDerm Prior to December,
  • Plaintiffs' Assertion That Their Express Waivers are of Statutory Appraisal Rights Only Must
  • Genuine Issues of Material Fact Precluding Summary Judgment Exist as to Lathes.
  • Adams v. Jankouskas, Del.
  • day they first learned of the proposed GenDerm/Medicis merger.
  • transaction on appraisal-related disclosure grounds.
  • GenDerm was founded by Dr. Joel E. Bernstein.
  • Mr. DiPrima became a full-time officer and President of the Consumer
  • stockholders purchased additional shares.
  • personal friends to invest in GenDerm, including Plaintiffs and Michael Pietrangello.
  • Bernstein Aff, 12).
  • At that time, the broker representing Bioglan,
  • said they knew Delaware law and we said we want all our shareholders,
  • GenDerm shareholders.
  • Plaintiffs' Information About GenDerm Prior to December,
  • "RAB 6/99 Dep."; Ex.
  • Richard Bernstein circulated
  • Although Bernstein considered the financials to be
  • of the merger, the merger consideration for in the Merger Agreement, and the shareholders'
  • On December 6, 1997, DiPrima received a copy of the merger agreement and certain

  • 13 . PLAINTIFFS REPLY BRIEF IN SUPPORT OF RENEWED MOTION FOR PARTIAL SUMMARY JUDGMENT

    EXTRACTED KEY WORDS
    DEFENDANTS
    SUMMARY JUDGMENT
    BERNSTEIN
    RENEWED MOTION
    COURT
    RICHARD
    JOEL
    WAIVER
    DISCLOSURE
    FRANK
    LIABILITY
    MATERIAL FACTS
    MERGER
    AFFIRMATIVE DEFENSE
    DEL
    DISCOVERY
    FIDUCIARY DUTY
    DIRECTORS
    STOCKHOLDERS
    PARTIAL SUMMARY JUDGMENT
    AFFIDAVITS
    CONNECTION
    DEPOSITIONS
    SILVERMAN
    KING STREET
    JONES
    ELLIOTT
    WILMINGTON
    ATTORNEYS
    
          IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                        IN AND FOR NEW CASTLE COUNTY
    
    STUART TURNER and RICHARD A.
    BERNSTEIN,
    
                      Plaintiffs,          ;
    
                V.                         i           C.A. No.: 16190
                                           1
    JOEL E. BERNSTEIN, M.D.,
    JAMES L. CURRIE, FRANK A.              i
    EHMANN, NEAL S. PENNEYS, M.D.,         )
    JEREMY SILVERMAN and
    LAURA PEARL                            i
                                                                               I
                      Defendants.          i
    
    
                      PLAINTIFFS' REPLY BRIEF IN SUPPORT                  :         -.
                         OF THEIR RENEWED MOTION FOR
                             PARTIAL SUMMARY JUDGMENT
                              ON THE ISSUE OF LIABILITY
    
    
    
    
                                     PRICKETT, JONES & ELLIOTT
                                     James L. Holzman
                                     Ronald A. Brown, Jr.
                                     1310 King Street
                                     P.O. Box 1328
                                     Wilmington, Delaware 19899
                                     (302) 888-6500
                                     Attorneys for Plaintiffs
    
    
    
    
    Dated: March 31, 2000
    
    
    
                                                                             TABLE OF CONTENTS
    
    
                                                                  Page
    
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • STUART TURNER and RICHARD A. BERNSTEIN,
  • JOEL E. BERNSTEIN, M.D., JAMES L. CURRIE, FRANK A.
  • i EHMANN, NEAL S. PENNEYS, M.D.,) JEREMY SILVERMAN and LAURA PEARL
  • PLAINTIFFS' REPLY BRIEF IN SUPPORT
  • PARTIAL SUMMARY JUDGMENT
  • ON THE ISSUE OF LIABILITY
  • PRICKETT, JONES & ELLIOTT
  • 1310 King Street
  • Wilmington, Delaware 19899
  • Attorneys for Plaintiffs
  • PLAINTIFFS ARE ENTITLED TO SUMMARY JUDGMENT ON THE
  • Defendants' Request for More Discovery is Not a Basis to Deny
  • or Defer Plaintiffs' Renewed Motion for Summary Judgment.
  • The Affirmative Defense of "Waiver" is Legally
  • Not Bar A Breach of Fiduciary Duty Action.
  • 10, 11, 13 Atlantis Plastics Corp. v. Sammons, Del.

  • 14 . PLAINTIFFS REPLY BRIEF IN SUPPORT OF MOTION FOR PARTIAL SUMMARY JUDGMENT

    EXTRACTED KEY WORDS
    DISCLOSURE
    DIRECTORS
    DUTY
    DEFENDANTS
    SUMMARY JUDGMENT
    COURT
    MOTION
    PARTIAL SUMMARY JUDGMENT
    DEL
    MERGER
    STOCKHOLDERS
    DELAWARE
    SUE
    BREACH
    MATERIAL FACTS
    BERNSTEIN
    STATUTORY NOTICE
    APPRAISAL RIGHTS
    DIPRIMA DAVID
    DISCLOSURE CLAIM
    CONNECTION
    REPRESENTATIVES
    DRB
    FINANCIALS
    MERGER AGREEMENT
    RICHARD
    AUTHORITIES
    STATUTORY NOTICE REQUIREMENT
    COMPLAINT
    
                IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                               IN AND FOR NEW CASTLE COUNTY
    
    STUART TURNER and RICHARD A.
    BERNSTEIN,
    
                            Plaintiffs,
    
                    V .                              C.A. No.:16190
    
    JOEL E. BERNSTEIN, M.D.,
    JAMES L. CURRIE, FRANK A.
    EHMANN, NEAL S. PENNEYS, M.D.,
    JEREMY SILVERMAN, LAURA PEARL,
    HENRY KUEHN, and GENDERM                                             -  -
    CORPORATION,                                                         .  _
                                                                         t-2
                            Defendants.                                  i. .!
    
    
    
                                PLAINTIFFS' REPLY BRIEF IN
       SUPPORT OF PLAINTIFFS' MOTION FOR PARTIAL SUMMARY JUDGMENT
    
    
                                           PRICKETT, JONES, ELLIOTT,
                                              KRISTOL  & SCHNEE
                                           James L. Holzman
                                           Ronald A. Brown, Jr.
                                           1310 King Street
                                           P.O. Box 1328
                                           Wilmington, Delaware 19899
                                           (302) 888-6500
                                           Attorneys for Plaintiffs
    OF COUNSEL:
    
    DIPRIMA  & HOFFMAN
    Frank P. DiPrima
    David M. Hoffman
    99 Greenwich Court
    P.O. Box 351
    Madison, NJ 07940
    (973) 660-0934
    
    Dated: July 13, 1998
    
    
    
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • STUART TURNER and RICHARD A. BERNSTEIN,
  • PLAINTIFFS' REPLY BRIEF IN SUPPORT OF PLAINTIFFS' MOTION FOR PARTIAL SUMMARY JUDGMENT
  • Frank P. DiPrima David M. Hoffman
  • TABLE OF AUTHORITIES.
  • The Directors Owed a Duty of Disclosure
  • Representatives Owed and Breached a Fiduciary
  • To Sue Defendants for Breach of Fiduciary
  • Arnold v. Society for Savinqs Bancorp., Inc., Del.
  • appraisal rights rests with the party issuing the appraisal
  • "corollaryff to the statutory notice requirement under S2513
  • of disclosure is ftderivativett (DRB at 6) of the statutory
  • in connection with corporate self-tender offers even though
  • stockholders in a position in which their stockholders must
  • notice itself to include any material facts or substantive
  • Court's teaching in Arnold II was that because the merger
  • the Merger Agreement and the effectuation of the Merger on
  • the complaint does allege that the directors
  • The defendants' position is an attempt to interject, through the back door, a reliance
  • The 1995 and 1996 Financials

  • 15 . REPLY BRIEF IN SUPPORT OF MOTION TO DISMISS AND ANSWERING BRIEF IN OPPOSITION TO MOTION FOR PARTIAL SUMMARY JUDGMENT

    EXTRACTED KEY WORDS
    DEFENDANTS
    DISCLOSURE
    BERNSTEIN
    COURT
    SUMMARY JUDGMENT
    MERGER
    MOTION
    DEL
    DELAWARE
    DISMISS
    MERGER AGREEMENT
    DUTY
    STANDING
    SHAREHOLDERS
    SUPR
    COMPLAINT
    FIDUCIARY DUTY
    PARTIAL SUMMARY JUDGMENT
    FORMER DIRECTORS
    TRANSACTION
    ALLEGEDLY DEFICIENT
    STOCKHOLDERS
    CLASS ACTION
    CIVAMIDE LICENSE
    OBLIGATION
    MATERIALS
    APPRAISAL RIGHTS
    DISCOVERY
    CONSENT SOLICITATION PACKAGE
    
                  IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                               IN AND FOR NEW CASTLE COUNTY
    
    STUART TURNER and RICHARD A.                 >
    BERNSTEIN,                                    >>
                             Plaintiffs,
                                                  ;
            V.                                    >          Civil Action No. 16190NC
                                                  >
    JOEL E. BERNSTEIN, M.D., JAMES L.             >
    CURRIE, FRANK A. EHMANN, NEAL S.              >
    PENNEYS, M.D., JEREMY SILVERMAN,              1
    LAURA PEARL, HENRY KUEHN, and                 >
    GENDERM CORPORATION,                          >> . ,
                             Defendants.          >
    
                     REPLY BRIEF OF DEFENDANT JOEL E. BERNSTEIN, M.D. . -
                         IN SUPPORT OF HIS MOTION TO DISMISS AND _~_ - -
                           ANSWERING BRIEF IN OPPOSITION TO                          -  :
              PLAINTIFFS' MOTION FOR PARTIAL SUMMARY JUDGMENT
    
    
    
    
    
    
                                                   Gregory V. Varallo
                                                   Russell C. Silberglied
                                                   Megan Semple Greenberg
                                                   Richards, Layton & Finger
                                                   One Rodney Square
                                                   P.O. Box 551
    Of Counsel:                                    Wilmington, Delaware 19899
                                                   (302) 658-6541
    Michael S. Poulos                                   Attorneys for Defendant
    Jennifer A. Barrett                                 Joel E. Bernstein, M.D.
    RUDNICK & WOLFE
    203 N. LaSalle Street
    Chicago, Illinois 6060 l-75 16
    (3 12) 368-4000
    
    June 26, 1998
    
    RLFl-171356-1
    
    
    
                                                TABLE OF CONTENTS
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • REPLY BRIEF OF DEFENDANT JOEL E. BERNSTEIN,
  • -IN SUPPORT OF HIS MOTION TO DISMISS AND _~_ - -PLAINTIFFS' MOTION FOR PARTIAL SUMMARY
  • BE DISMISSED FOR LACK OF STANDING AND FAILURE TOCOMPLYWITHCOURTOFCHANCERYRULE23.1.
  • Disclosure With Respect to the Allegedly Deficient Disclosures.
  • Duty of Disclosure.
  • ENTRY OF SUMMARY JUDGMENT AS TO COUNT I IS NOT
  • Bershad v. Hartz, Del.
  • Supr., 551 A.2d 433.
  • Plaintiffs Smart Turner and Richard A. Bernstein, in
  • their capacity as former shareholders of GenDerm Corporation,
  • The complaint purports to state three separate causes of action
  • Each of the defendants moved to dismiss the complaint pursuant to Court of
  • their motion for partial summary judgment.

  • 16 . GENDERM CORP.S REPLY MEMORANDUM IN SUPPORT OF MOTION TO DISMISS AND IN OPPOSITION TO MOTION FOR SUMMARY JUDGMENT

    EXTRACTED KEY WORDS
    GENDERM
    DEFENDANTS
    DUTY
    MOTION
    DEL
    MERGER
    RELIEF
    CERTIFICATE
    SUPPORT
    DIRECTORS
    COURT
    CORRECTION
    SHAREHOLDERS
    SUPR
    DISMISS
    GENDERM/MEDICIS
    STOCKHOLDERS
    CORPORATE DEFENDANT
    DISCLOSURE
    APPRAISAL RIGHTS
    STATUTORY
    FORMER DIRECTORS
    FIDUCIARY DUTIES
    PLAINTIFFS ARGUE
    FIDUCIARY OBLIGATIONS
    QUASI-APPRAISAL REMEDY
    COMPLAINT
    WRITTEN CONSENT
    SUMMARY JUDGMENT
    
             IN THE COURT OF CHANCERY FOR THE STATE OF DELAWARE                           A-.
                                                                                         ,*lj  .i'
                               IN AND FOR NEW CASTLE COUNTY
    
    STUART TURNER AND RICHARD A. )
    BERNSTEIN,                              >1
           Plaintiffs,                      >>
    V.                                      ) C.A. No.  16190- NC ---
                                                                         =7-
                                                                          r-
                                            >                             ,.
    JOEL E. BERNSTEIN, M.D.,                >
    JAMES L. CURRIE, FRANK A.               >
    EHMANN, NEAL S. PENNEYS,                >
    M.D., JEREMY SILVERMAN, LAURA  )
    PEARL, HENRY KUEHN, and                 >
    GENDERM CORPORATION,                    >>
           Defendants.                       >
    
                           DEFENDANT GENDERM CORPORATION'S
                                REPLY MEMORANDUM IN
            SUPPORT OF ITS MOTION TO DISMISS AND IN OPPOSITION
                   TO PLAINTIFFS' MOTION FOR SUMMARY JUDGMENT
    
                                      MORRIS, JAMES, HITCHENS & WILLIAMS
                                      Henry N. Hemdon, Jr.
                                      Michael A. Weidinger
                                      222 Delaware Avenue
                                      P.O. Box 2306
                                      Wilmington, DE 19899
                                      (302) 8886800
                                      Attorneys for Defendant
                                      GenDerm Corporation
    OF COUNSEL:
    Troy B. Froderman
    Merritt L. Bingham
     Bryan Cave LLP
     2800 North Central
     Suite 2100
     Phoenix, AZ 85004-1098
     (602) 230-7000                                              Dated: June 26, 1998
    
    
    
                                                   TABLE OF CONTENTS
    
    
    TABLE OF AUTHORITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
    
    
    SNIPPETS:
  • REPLY MEMORANDUM IN SUPPORT OF ITS MOTION TO DISMISS AND IN OPPOSITION
  • TO PLAINTIFFS' MOTION FOR SUMMARY JUDGMENT
  • Cognizable Against GenDerm/Medicis
  • Medicis for Alleged Breaches of Duty Owed to GenDerm
  • Shareholders by GenDerm's Former Directors
  • COUNT II OF PLAINTIFFS' COMPLAINT IS MOOT AND MUST
  • Precluding this Court From Granting a Motion to Dismiss
  • the Certificate of Correction.
  • Claim For Relief Based On A Technical Statutory Violation Of No
  • Supr., 413 A.2d 876.
  • Arnold v. Society for Savirxs Bancorn, Inc., Del.
  • In re Ocean Drilling & Exnloration Shareholders Litig,
  • The defendants all filed motions to dismiss and briefs in support of their motions.
  • summary judgment as well and their brief also supports that motion.
  • corporate defendant owed no fiduciary duty to the former stockholders of GenDerm
  • this Court adopt a rule engrafting fiduciary obligations on an arms' length acquirer
  • (through the vehicle of the surviving entity2 in a reverse triangular merger).
  • owe duties of disclosure or loyalty to stockholders.
  • no fiduciary duties to its own stockholders, the surviving corporation, GendermMedicis,
  • exercising appraisal rights, and have every incentive to see that it is undertaken.
  • proposition that an innocent party can be required to provide a quasi-appraisal remedy.

  • 17 . DEFENDANT FORMER OUTSIDE DIRECTORS REPLY BRIEF IN FURTHER SUPPORT OF THEIR MOTION TO DISMISS

    EXTRACTED KEY WORDS
    DIRECTORS
    DISCLOSURE
    DUTY
    DEL
    STATUTORY
    ALLEGED SHORTCOMINGS
    DEFENDANT
    MERGER
    LIABILITY
    PLAINTIFFS CONCEDE
    SUPR
    APPRAISAL RIGHTS
    RESTS
    DELAWARE
    STOCKHOLDERS
    SHAREHOLDERS
    SURVIVING COMPANY
    DELAWARE LAW
    COMPLAINT
    FIDUCIARY DUTIES
    EFFECT PLAINTIFFS
    ALLEGATIONS
    SELF-DEALING CLAIMS
    INFORMATION STATEMENT
    MERGER CONSIDERATION
    IMPOSE LIABILITY
    SPECIAL INJURY
    BERNSTEIN
    TRANSACTION
    
                                                                                         *  "*.  t  3; 
                  IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE .                                  
                                 IN AND FOR NEW CASTLE COUNTY                     i' .-' " " I P' .- ~,
                                                                                               .  \"' 
    
    STUART TURNER and RICHARD A.                      >
    BERNSTEIN,                                        1>
                         Plaintiffs,                  >>
           vs.                                        >           Civil Action No 16190-NC
    
                                                      >
    JOEL E. BERNSTEIN, M.D., JAMES L.                 >
    CURRIE, FRANK A. EHMANN, NEAL S.                  >
    PENNEYS, M.D., JEREMY SILVERMAN,                  >
    LAURA PEARL, HENRY KUEHN, and                     >
    GENDERM CORPORATION,                              >
                                                      >
                         Defendants.                  >
    
    
                         DEFENDANT FORMER OUTSIDE DIRECTORS'
                               REPLY BRIEF IN FURTHER SUPPORT OF
                                   THEIR MOTION TO DISMISS
    
                                        R. Judson Scaggs, Jr.
                                        Christopher L. Carlton
                                        MORRIS, NICHOLS, ARSHT & TUNNELL
                                        120 1 North Market Street
                                        Wilmington, Delaware 19899
                                        (302) 658-9200
                                               Attorneys for James L. Currie,
                                               Frank A. Ehmann, Neal S. Penneys, M.D.,
                                               Jeremy Silverman, Laura Pearl and
                                               Henry Kuehn
    
    OF COUNSEL:
    David J. Zott
    Geoffrey M. Davis
    KIRKLAND  & ELLIS
    200 East Randolph Drive
    Chicago, Illinois 60601
    (312) 861-2000
    
    June 26, 1998
    
    
    
                                                                                                 i
    
    
    SNIPPETS:
  • COUNT I SHOULD BE DISMISSED AS TO THE FORMER OUTSIDE DIRECTORS
  • Because The Former Directors Had No Contractual, Statutory
  • Or Fiduciary Duties Regarding The Appraisal Notice,
  • The Duty To Disclose Facts Necessary To Make The
  • Way Effect Plaintiffs' Ability To Pursue Its Disclosure Claims
  • Plaintiffs' Remaining Attempts To Impose Liability Upon The
  • Former Outside Directors For Alleged Shortcomings In The
  • Plaintiffs Concede That Count II Does Not State A Claim Against
  • Even If Plaintiffs' Claims Were Not Derivative -- And They Are --Plaintiffs' Conclusory
  • Arnold v. Societv for Savinw Bancorp, Inc., Del.
  • Supr.,
  • Plaintiffs cannot contest the answer that Delaware law provides:
  • notify shareholders of their appraisal rights was squarely on Medicis/New GenDerm.'
  • The surviving company issues the appraisal notice and it is the
  • not require the language in the Certificate of Merger that Plaintiffs claim it does.
  • unlike any of the stockholders
  • Defendant Former Outside Directors respond to Plaintiffs' motion for partial summary judgment
  • alleged materially misleading information statement); Sealv Mattress Co. of New Jersey,
  • appraisal rights; tendering his shares; and then accepting the merger consideration.
  • cannot knowingly accept benefits of transaction and thereafter attack its fairness).
  • regarding plaintiffs' appraisal rights necessarily rests with the party issuing the appraisal
  • Effect Plaintiffs' Ability To Pursue Its Disclosure Claims Against The Proper
  • Complaint concedes that Plaintiffs are not members of this group because "[Pllaintiffs.
  • Plaintiffs' self-dealing claims against Dr. Bernstein are purely derivative.
  • Although Plaintiffs' brief pays lip service to the need to allege special injury to maintain

  • 18 . DEFENDANT FORMER OUTSIDE DIRECTORS ANSWERING BRIEF IN OPPOSITION TO PLAINTIFFS MOTION FOR PARTIAL SUMMARY JUDGMENT

    EXTRACTED KEY WORDS
    GENDERM
    APPRAISAL RIGHTS
    SUMMARY JUDGMENT
    MOTION
    DIPRIMA
    DIRECTORS
    PLAINTIFF BERNSTEIN
    DEFENDANTS
    COURT
    FINANCIAL INFORMATION
    DELAWARE
    MEDICIS
    MATERIAL FACT
    SHAREHOLDERS
    PARTIAL SUMMARY JUDGMENT
    PRESIDENT
    MATERIAL FACT QUESTIONS
    STATUTORY
    DISCOVERY
    RESPONSIBILITY
    ASSUMING ARGUENDO
    DISCLOSURE
    OPPOSITION
    NOTIFY PLAINTIFFS
    NOTIFYING SHAREHOLDERS
    MERGER CONSIDERATION
    STOCKHOLDERS
    MEDICIS/NEW GENDERM
    INDIVIDUAL INVESTORS
    
                IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
                                IN AND FOR NEW CASTLE COUNTY
    
    
    STUART TURNER and RICHARD A.                          >
    BERNSTEIN,                                            1>                                -
                          Plaintiffs,                     >                                         -.
                                                                                     :--               
                                                          >
    vs.                                                   >       Civil Action No. 16190-NC `?         
                                                          >                                         -1 
                                                                                      _.            : `,
    JOEL E. BERNSTEIN, M.D., JAMES L.                                                 .
                                                          >                           _ -           -7 
    CURRIE, FRANK A. EHMANN, NEAL S.                      >                           L                
                                                                                                     ,_
    PENNEYS, M.D., JEREMY SILVERMAN,                                                                 1
                                                          >                                            
                                                                                      c                
    LAURA PEARL, HENRY KUEHN, and                         >                           ;.:           
                                                                                       - -,  I-
    GENDERM CORPORATION,                                  >                                  -i:
    
                          Defendants.                     >
    
    
                         DEFENDANT FORMER OUTSIDE DIRECTORS'
                      ANSWERING BRIEF IN OPPOSITION TO PLAINTIFFS'
                         MOTION FOR PARTIAL SUMMARY JUDGMENT
    
    
                                         R. Judson Scaggs, Jr.
                                         Christopher L. Carlton
                                         MORRIS, NICHOLS, ARSHT & TUNNELL
                                         120 1 North Market Street
                                         P.O. Box 1347
                                         Wilmington, Delaware 19899
                                         (302) 658-9200
                                                Attorneys for James L. Currie,
                                                Frank A. Ehmann, Neal S. Penneys, M.D.,
                                                Jeremy Silverman, Laura Pearl and
                                                Henry Kuehn
    
    OF COUNSEL:
    David J. Zott
    Geoffrey M. Davis
    KIRKLAND  & ELLIS
    200 East Randolph Drive
    Chicago, Illinois 60601
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • ANSWERING BRIEF IN OPPOSITION TO PLAINTIFFS'
  • MOTION FOR PARTIAL SUMMARY JUDGMENT
  • AND STATUTORY OBLIGATION TO NOTIFY PLAINTIFFS
  • PLAINTIFF BERNSTEIN REQUESTED AND RECEIVED
  • GENDERM'S FINANCIAL INFORMATION BEFORE RECEIVING
  • THE MEDICIS NOTICE OF APPRAISAL.
  • MEDICISNEW GENDERM -- NOT THE FORMER OUTSIDE
  • DIRECTORS -- WAS RESPONSIBLE FOR NOTIFYING SHAREHOLDERS
  • MATERIAL FACT QUESTIONS EXIST AS TO PLAINTIFFS'
  • defendants tiled a motion to dismiss all counts of the complaint for failure to state a claim
  • fairness of the Merger consideration, the defendants did not comply with their disclosure
  • Former Outside Directors have had an opportunity to obtain discovery necessary to respond to
  • any duty of disclosure relating to appraisal rights belonged to Medicis/New
  • Plaintiffs' counsel of record in this case, Frank DiPrima.
  • DiPrima was also the President and CEO of GenDerm until his
  • MEDICIS, NOT GENDERM, HAD THE CONTRACTUAL AND STATUTORY OBLIGATION TO NOTIFY PLAINTIFFS OF
  • Old GenDerm and Medicis required Medicis/New GenDerm -- not Old GenDerm -- to provide
  • The predicate for their class allegations is-that Plaintiffs and all former stockholders
  • Mr. DiPrima turned to individual investors and the company raised approximately $ 1.6 million.
  • Any shortcomings in that notice were the responsibility of Medicis/New
  • ASSUMING ARGUENDO THAT PLAINTIFFS DID NOT EXPRESSLY WAIVE THEIR COUNT I CLAIMS, DISPUTED
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