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ANDRA v BLOUNT Click to find out why . . .



Keywords & Phrases
CaseNo: C.A. No. 17,154, CourtCode: CC, CourtName: IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE, Plaintiff: ANDRA, State: DE Delaware, UniqueCaseRef: DE>CC>00017154, Meadowcraft, Andra, Blount, Shares, Tender, Stockholders, Esquire, Disclosures, Merger, Del, Remedy, Delaware, Mwi Acquisition, Hackney, Shareholders, Unfair Dealing, Morris Hackney, Amended Complaint, Shareholder, Class Action, Transaction, Mckinney, Action Complaint, Standing, Fiduciary Duty, Minority Stockholders, Preliminary Injunction, Stock, Second Amended Complaint, Amended Class, Non-tendering Shareholder, Appraisal Rights, Preliminary Injunction Motion, Financial Advisor , ContentID: 120239728

Case Documents
1 2000-03-29 MEMORANDUM OPINION
[ see first page and extracted highlights below  ] ItemID: 100282
27 pages
PDF
2 2000-01-17 DEFENDANTS MWI ACQUISITION S. BLOUNT AND T. LEROYS REPLY BREIF IN FURTHER SUPPORT OF MOTION TO DISMISS
[ see first page and extracted highlights below  ] ItemID: 102892
10 pages
PDF
3 1999-05-25 AMENDED CLASS ACTION COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 101948
15 pages
PDF
Total Documents: 3 documents , 52 pages
Price: $ 29.95


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1 . MEMORANDUM OPINION

EXTRACTED KEY WORDS
ANDRA
BLOUNT
DEFENDANTS
STOCKHOLDERS
ATTORNEYS
DISCLOSURES
TENDER
MEADOWCRAFT
ESQUIRE
REMEDY
DELAWARE
COUNSEL
MERGER
UNFAIR DEALING
DEL
CLASS ACTION
MWI ACQUISITION
FIDUCIARY DUTY
MINORITY STOCKHOLDERS
LITIGATION
SHAREHOLDERS
PRELIMINARY INJUNCTION
MORRIS HACKNEY
TRANSACTION
SECOND AMENDED COMPLAINT
APPRAISAL RIGHTS
PRELIMINARY INJUNCTION MOTION
NON-TENDERING STOCKHOLDER
CONNECTION
       IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE                             tliyz

                     IN AND FOR NEW CASTLE COUNTY


MARY D. ANDRA,

                         Plaintiff,

      V.                                                   Civil Action No. 17154

SAMUEL R. BLOUNT, MEADOWCRAFT,                     >
INC., TIMOTHY M. LEROY, T. MORRIS                  >
HACKNEY, JAMES M. SCOTT, REESE H. )
MCKINNEY, JR., and MWI ACQUISITION CO., )

                         Defendants.


                           MEMORANDUM OPINION

                         Date Submitted: March 23,200O
                           Date Decided: March  29,200O

Joseph A. Rosenthal, Esquire, of ROSENTHAL, MONHAIT, GROSS & GODDESS,
Wilmington, Delaware; OF COUNSEL: Ann Miller, Esquire, Michael D. Donovan,
Esquire, of DONOVAN MILLER, Philadelphia, Pennsylvania, Attorney for Plaintiff.

A. Gilchrist Sparks, III, Esquire, Jessica Zeldin, Esquire, of MORRIS, NICHOLS,
ARSHT  & TUNNELL, Wilmington, Delaware; OF COUNSEL: Gary W. Kubek,
Esquire, Colby A. Smith, Esquire,  Jefiey I. Lang, Esquire, of DEBEVOISE  &
PLIMPTON, New York, New York, Attorneys for Defendants Samuel R. Blount,
Timothy M. Leroy and MWI Acquisitions Co.

Anne C. Foster, Esquire, Thad J. Bracegirdle, Esquire, of RICHARDS, LAYTON &
FINGER, Wilmington, Delaware; OF COUNSEL: J. Michael Rediker, Esquire, of
RITCHIE & REDIKER, Birmingham, Alabama, Attorneys for Defendants T. Morris
Hackney, James S. Scott, Reese H. McKinney, Jr., and Meadowcraft, Inc.


STRINE, Vice Chancellor



        In this opinion, I conclude that a non-tendering stockholder with

appraisal rights who is squeezed out in a back-end, cash-out merger after a

tender offer may not challenge the disclosures issued in connection with that
SNIPPETS:
  • Defendants.
  • Joseph A. Rosenthal, Esquire, of ROSENTHAL, MONHAIT, GROSS & GODDESS, Wilmington, Delaware;
  • tender offer when the tender offer was effected by a majority stockholder
  • who already possessed the voting power to force the back-end merger.
  • the non-tendering stockholder can allege no personal harm
  • caused to her by the allegedly inadequate disclosures.
  • fiduciary duty by the director-defendants,
  • stockholder without appraisal rights.
  • ' Del.
  • In this unfair dealing action,
  • pursue an unfair dealing claim on a class action basis and seek recovery of
  • The defendants in this action --the directors of Meadowcraft, Inc.,
  • Meadowcraft itself, and MWI Acquisition Co., a corporate entity used by
  • dismissal of this case on the grounds that the plaintiff, Mary D. Andra:
  • connection with a tender offer in which Andra did not tender;
  • officer, defendant Samuel R. Blount, in May 1999.
  • stockholders through a merger that -- once recommended by the
  • plaintiff has also concluded that damages would be an adequate remedy for the public
  • Plaintiff sought a preliminary injunction in connection with the tender offer for
  • The defendants were legitimately confused about whether the second amended complaint sets
  • Nonetheless, Andra contends that she intended to assert such a claim and I find that the
  • Another member, defendant T. Morris Hackney, receives over $140,000 a year as his share of
  • develop interest in another value-maximizing transaction
  • Andra had the opportunity to avoid this "harm" by pressing her preliminary injunction motion.
  • Ch., 482 A.2d 335 (holding that permitting minority stockholders to tender shares without

  • 2 . DEFENDANTS MWI ACQUISITION S. BLOUNT AND T. LEROYS REPLY BREIF IN FURTHER SUPPORT OF MOTION TO DISMISS

    EXTRACTED KEY WORDS
    ANDRA
    AMENDED COMPLAINT
    SHAREHOLDER
    STANDING
    NON-TENDERING SHAREHOLDER
    DISMISS
    DEL
    CHANCELLOR
    DISCLOSURE
    SHARES
    ABAIIAN
    ALLEGES
    ASSERT
    PLAINTIFF
    PURCHASE
    MEADOWCRAFT
    DAMAGES
    MINORITY SHAREHOLDERS
    MOTION
    FREEDMAN
    MERGER
    BLOUNT
    CONTROL
    TENDER OFFEROR
    COURT
    SUPPORT
    DEFENDANTS
    SLIP
    BASIS
    
                  IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                                IN AND FOR NEW CASTLE COUNTY
    
    MARY D. ANDRA,
    
                          Plaintiff,           j
    
            V.                                 1      Civil Action No. 17154
    
    SAMUEL R. BLOUNT, TIMOTHY M.               1
    LEROY, T. MORRIS HACKNEY,                  >
    JAMES M. SCOTT, REESE H.                                                         XI
    MCKINNEY, JR., MEADOWCRAFT,                                                 C-J !`l!
                                               t                                -._ `- , z
                                                                                2:.  .-  <-.
    INC. and MWI ACQUISITION CO.,                                                            :i      :;
                                                                                            :  J       
                                               i                                1. __                -'
                                                                                .
                          Defendants.          1                                            -2
                                                                                            -3
                                                                                I           - ,
                                                                                            -.-..
                             DEFENDANTS MWI ACQUISITION CO.,                    c,.,         .*
                        SAMUEL R. BLOUNT AND TIMOTHY M. LEROY'S "I-                         s
                        REPLY BRIEF IN FURTHER SUPPORT OF THEIR
                  MOTION TO DISMISS THE SECOND AMENDED COMPLAINT
    
                                           MORRIS, NICHOLS, ARSHT  & TUNNELL
                                           A. Gilchrist Sparks, III
                                           Jessica Zeldin
                                           1201 N. Market Street
                                           P.O. Box 1347
                                           Wilmington, DE 19899-l 347
                                           (302) 658-9200
                                            Attorneys for Defendants
                                             Samuel R. Blount, Timothy M. LeRoy
                                             and MWI Acquisition Co.
    
    OF COUNSEL:
    
    Gary W. Kubek
    Colby A. Smith
    Jeffi-ey I. Lang
    DEBEVOISE  & PLIMPTON
    875 Third Avenue
    New York. NY 10022
    
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • REPLY BRIEF IN FURTHER SUPPORT OF THEIR
  • MOTION TO DISMISS THE SECOND AMENDED COMPLAINT
  • THE SECOND AMENDED COMPLAINT SHOULD BE DISMISSED BECAUSE ANDRA LACKS STANDING.
  • Abaiian v. Kennedy,
  • Plumbers & Pipetitters Local Union 74 v. Gordon, Del.
  • Plaintiff Mary D. Andra alleges that the disclosure materials accompanying Samuel R. Blount's
  • Offer to Purchase omitted material
  • Yet Andra has failed to demonstrate how Blount's tender offer had any effect on
  • Meadowcraft, Inc. and thus had complete control over Meadowcraft, including
  • the power to cause a cash-out merger of the minority shares.
  • As a non-tendering shareholder,
  • Meadowcraft, subject to being cashed out by Blount, with the right to seek appraisal.
  • shareholder suffered no damages.
  • In short, as a non-tendering shareholder, Andra has failed to demonstrate any
  • basis to establish standing to pursue the claims asserted in the Second Amended Complaint.
  • I Andra had the opportunity to seek to enjoin the tender offer based on her disclosure claim.
  • Andra abandoned her motion for a preliminary injunction after expedited discovery.
  • Andra relies -- both of which were cited in the defendants' memorandum in support of their
  • No. 11425, slip op.
  • "a plaintiff must assert facts that he has been injured in a way
  • is based on a selective and misleading quotation from Chancellor Allen's opinion.
  • The Abaiian Court further distinguished the circumstance at issue in Freedman v.
  • the tender offeror owned only 48% of the outstanding shares of the subject
  • where the tender offeror acquires control and then cashes out the minority shareholders,

  • 3 . AMENDED CLASS ACTION COMPLAINT

    EXTRACTED KEY WORDS
    DEFENDANTS
    SHARES
    PLAINTIFF
    HACKNEY
    BLOUNT
    MCKINNEY
    ACTION COMPLAINT
    STOCK
    AMENDED CLASS
    ESQUIRE
    COURT
    MWI ACQUISITION
    MEMBERS
    SHAREHOLDERS
    FINANCIAL ADVISOR
    SPECIAL COMMITTEE
    MEADOWCRAFT PUBLIC STOCKHOLDERS
    MORRIS HACKNEY
    PARAGRAPH
    FAIRNESS OPINION
    TRANSACTION
    POTENTIAL ACQUIRER
    VALUATION
    COMMON STOCK
    REPRESENTING
    INVESTMENT BANKING FIRM
    IPO
    NEGOTIATIONS
    PERSONAL KNOWLEDGE
    
           IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE                                   I,
                           IN AND FOR NEW CASTLE COUNTY
    
    MARY D. ANDRA,                               1
    
                          Plaintiff,
           v.                                    ,' Civil Action No. 17154
    SAMUEL R. BLOUNT,                            ;
    TIMOTHY M. LEROY,                            )
    T. MORRIS HACKNEY,
    JAMES M. SCOTT, and                          ;
    REESE H. MCKINNEY, JR.
    MEADOWCRAFT, INC.,                           i
    and MWI ACQUISITION CO.,                     )
    
                          Defendants.
    
    
           NOTICE OF FILING OF AMENDED CLASS ACTION COMPLAINT
    
    TO:    Anne C. Foster, Esquire
           Richards, Layton  & Finger
           One Rodney Square
           Wilmington, DE 19801
    
           PLEASE TAKE NOTICE that plaintiff herewith files the attached Amended Class
    
    Action Complaint as of course pursuant to Rule  15(a).
    
           In compliance with Rule 15(aa), plaintiff avers that the Amended Complaint is in
    
    full substitution for the complaint heretofore tiled in the above-captioned action,
    
                                                 ROSENTHAL, MONHAIT, GROSS  &
                                                      JiQQDESS, P.A.
    
    
    
    
                                                 PC@& 1070
                                                 Wilmington, DE 19899-1070
                                                 (302) 656-4433
                                                 Attorneys for Plaintiff
    
    
    
                IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
                             N AND FOR NEW CASTLE COUNTY
    
    
    SNIPPETS:
  • T. MORRIS HACKNEY,
  • REESE H. MCKINNEY, JR.
  • PLEASE TAKE NOTICE that plaintiff herewith files the attached Amended Class
  • Action Complaint as of course pursuant to Rule 15.
  • Plaintiff alleges, on information and belief, except paragraph 1 which is alleged
  • on personal knowledge, as follows:
  • of Meadowcraft, Inc. common stock.
  • Meadowcraft had approximately 19.7 million shares of common stock outstanding.
  • Defendant Samuel R. Blount is and was at all relevant times
  • (collectively the "Individual Defendants"), owe fiduciary duties of good faith, fair dealing,
  • due care and candor to plaintiff and the other Meadowcraft public stockholders.
  • Plaintiff brings this action pursuant to Rule 23 of the Rules of this Court,
  • common stock who are members of the Class.
  • According to the IPO Prospectus,
  • shareholders of Meadowcraft and the balance for capital expenditures.
  • In connection with those merger negotiations, on November 10,
  • The special committee then engaged Interstate/Johnson Lane Corporation
  • , an investment banking firm, as its financial
  • potential acquirer were terminated during the second quarter,
  • Financial Officer, Steven Braswell, admitted that the financial advisor engaged by the
  • Meadowcraft he did not own for $8 cash per share in a cash-out merger transaction.
  • They are incapable of representing Meadowcraft's public
  • effectuated by means of a tender offer by Blount's company, defendant MWI Acquisition
  • had prepared valuation analyses and a fairness valuation at that time valuing the shares
  • issued a fairness opinion supporting the $10 per share buy-out by Blount.
  • Edward E. Angwin, Esquire
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