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COMMUNICATION RESOURCES v DIGINET COLUMBIA Click to find out why . . .



Keywords & Phrases
CaseNo: C.A. No. 17,590, CourtCode: CC, CourtName: IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE, Plaintiff: COMMUNICATION RESOURCES, State: DE Delaware, UniqueCaseRef: DE>CC>00017590, Diginet Americas, Diginet Colombia, Complaints, Americas, Colombia, Stock Purchase Agreements, Valuation, Support, Diginet, Shares, Roll-up Event, Motion, Warburg, Comp, Del, Purpose, Defendant Diginet, Shareholders, Jones, Datacom Investments, Stock, Demand Letter, Allegations, Inspection, Common Stock, Disclaimer, Stock Purchase, Consolidation, Wrongdoing, Exchange Ratio, Ans, Proper Purpose, Subsidiaries, Investments, Preliminary Statement, Warburg Affidavit, Credible Basis, Demand , ContentID: 120240614

Case Documents
1 2000-03-27 OPENING BRIEF OF DEFENDANTS DIGINET COLOMBIA AND DIGINET AMERICAS IN SUPPORT OF MOTION TO DISMISS COMPLAINTS
[ see first page and extracted highlights below  ] ItemID: 102663
27 pages
PDF
2 2000-03-17 REPLY BRIEF OF DEFENDANTS DIGINET COLOMBIA AND DIGINET AMERICAS IN SUPPORT OF MOTION TO DISMISS
[ see first page and extracted highlights below  ] ItemID: 102664
20 pages
PDF
3 1999-11-17 COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 101599
8 pages
PDF
Total Documents: 3 documents , 55 pages
Price: $ 29.95


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1 . OPENING BRIEF OF DEFENDANTS DIGINET COLOMBIA AND DIGINET AMERICAS IN SUPPORT OF MOTION TO DISMISS COMPLAINTS

EXTRACTED KEY WORDS
PLAINTIFFS
DIGINET COLOMBIA
COMPLAINTS
DEFENDANTS
STOCK PURCHASE AGREEMENTS
VALUATION
COMP
SUPPORT
PURPOSE
COURT
ROLL-UP EVENT
SHARES
JONES
MOTION
DEL
DATACOM INVESTMENTS
SHAREHOLDERS
CONSOLIDATION
WRONGDOING
PROPER PURPOSE
DEMAND LETTER
ALLEGATIONS
INSPECTION
LEGITIMATE
COMMON STOCK
RODNEY SQUARE
WILMINGTON
ESQUIRE HOLLAND
BRICKELL AVENUE
            IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE

                           IN AND FOR NEW CASTLE COUNTY

COMMUNICATION RESOURCES, INC.,               >
AND DATACOM INVESTMENTS                      >
LIMITED,                                     >)
                     Plaintiffs,             1      C.A. No. 17590-NC
                                             >      (Consolidated)
                                             >
              V .                            1
                                             >      PUBLIC VERSIOJ          -.
DIGINET COLOMBIA, INC., and                  1                           "  `_I
DIGINET AMERICAS, INC.,                      >)
                     Defendants.             )

            OPENING BRIEF OF DEFENDANTS DIGINET COLOMBLA  AND
             DIGINET AMERICAS IN SUPPORT OF THEIR MOTIONS TO
                               DISMISS THE COMPLAINTS


                                          ASHBY & GEDDES
                                          Lawrence C. Ashby
                                         Richard I.G. Jones, Jr.
                                          One Rodney Square
                                         P.O. Box 1150
                                          Wilmington, DE 19899
                                          (302) 654-1888
                                           Attorneys for Defendants
OF COUNSEL:
James D. Wing, Esquire
Holland & Knight LLP
701 Brickell Avenue, Suite 3000
Miami, FL 33131
(305) 3748500

Dated: March 27,200O
76842.1



                                                                                               


                                                                                Page

TABLE OF CITATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    ii

SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • > AND DATACOM INVESTMENTS
  • OPENING BRIEF OF DEFENDANTS DIGINET COLOMBLA AND
  • DIGINET AMERICAS IN SUPPORT OF THEIR MOTIONS TO
  • Richard I.G. Jones, Jr.
  • One Rodney Square
  • Wilmington, DE 19899
  • James D. Wing, Esquire Holland & Knight LLP 701 Brickell Avenue, Suite 3000 Miami, FL 33131
  • The Stock Purchase Agreements
  • The "Roll-Up Event," the Valuation, and Resulting Share Exchange
  • Plaintiffs' Demand For Access To Defendants' Books and Records
  • THE COMPLAINTS LACK SPECIFIC AND CREDIBLE
  • ALLEGATIONS SUFFICIENT TO SUPPORT INVESTIGATION
  • Plaintiffs Bear The Burden of Establishing A Proper Purpose.
  • Credible Basis to Infer Wrongdoing or Mismanagement.
  • PLAINTIFFS HAVE NO LEGITIMATE INTEREST IN
  • VALUING SHARES OF DIGINET COLOMBIA.
  • THE DEMANDED INSPECTION.
  • Berkowitz v. Legal Sea Foods, Inc., Del.

  • 2 . REPLY BRIEF OF DEFENDANTS DIGINET COLOMBIA AND DIGINET AMERICAS IN SUPPORT OF MOTION TO DISMISS

    EXTRACTED KEY WORDS
    PLAINTIFFS
    DEFENDANTS
    COLOMBIA
    DIGINET COLOMBIA
    SUPPORT
    VALUATION
    WARBURG
    COURT
    STOCK PURCHASE AGREEMENTS
    MOTION
    SHARES
    DEL
    DISCLAIMER
    ROLL-UP EVENT
    EXCHANGE RATIO
    ANS
    SHAREHOLDERS
    PRELIMINARY STATEMENT
    WARBURG AFFIDAVIT
    CREDIBLE BASIS
    COMPLAINTS
    SUSPECT WRONGDOING
    SUSPICIONS
    INVESTMENT
    SECURITV FIRST CORN
    INSPECTION
    STOCKHOLDERS
    ALLEGATIONS
    SUBSIDIARIES
    
                  IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                                IN AND FOR NEW CASTLE COUNTY
    
    COMMUNICATION RESOURCES, INC.,
    AND DATACOM INVESTMENTS
    LIMITED,
                                                   i
                          Plaintiffs,                      C.A. No. 17590-NC
                                                   ;       (Consolidated)
    
                    V.
    
    DIGINET COLOMBIA, INC., and
    DIGINET AMERICAS, INC.,
    
                          Defendants.
    
    
                   REPLY BRIEF OF DEFENDANTS DIGINET COLOMBIA AND
               DIGINET AMERICAS IN FURTHER SUPPORT OF THEIR MOTIONS TO
                                    DISMISS THE COMPLAINTS
    
    
                                               ASHBY & GEDDES
                                               Lawrence C. Ashby
                                               Richard  LG. Jones,, Jr.
                                               One Rodney Square
                                               P.O. Box 1150
                                               Wilmington, DE 19899
                                               (302) 654-1888
                                                Attorneys for Defendants
    OF COUNSEL:
    James D. Wing, Esquire
    Holland & Knight LLP
    701 Brickell Avenue, Suite 3000
    Miami, FL 33 13 1
    (305) 374-8500
    
    Dated: March  17,200O
    77782.1
    
    
    
                                                                                                    
    
    
    
    TABLE OF CITATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • REPLY BRIEF OF DEFENDANTS DIGINET COLOMBIA AND DIGINET AMERICAS IN FURTHER SUPPORT OF THEIR
  • PRELIMINARY STATEMENT.
  • The Accompanying Affidavit And The Valuation Itself Establish
  • That Plaintiffs' Arguments Based On The Warburg Disclaimer
  • A CREDIBLE BASIS FOR SUSPICION.
  • BASIS TO SUSPECT WRONGDOING IN CONNECTION WITH THE
  • 1998 ROLL-UP EVENT..
  • Berkowitz v. Legal Sea Foods, Inc., Del.

  • 3 . COMPLAINT

    EXTRACTED KEY WORDS
    DIGINET AMERICAS
    DEFENDANT DIGINET
    DIGINET COLOMBIA
    PLAINTIFFS
    STOCK
    ROLL-UP EVENT
    SHARES
    STOCK PURCHASE
    STOCK PURCHASE AGREEMENTS
    INVESTMENTS
    COMMON STOCK
    DEMAND
    DATACOM INVESTMENTS
    EXCHANGE
    CRI
    FAIR MARKET
    WARBURG
    WAIVERS
    VALUATION
    DEMAND LETTER
    PROVIDER
    SUBSIDIARIES
    PURSUANT
    BOOKS
    DETERMINATION
    SECURITIES
    CONNECTION
    EXECUTE
    DEMANDED MATERIALS
    
                      IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                                    IN AND FOR NEW CASTLE COUNTY
    
    
    COMMUNICATION RESOURCES, INC.,
    AND DATACOM INVESTMENTS
    LIMITED,
    
                              Plaintiffs,
    
                       V.
    
    DIGINET COLUMBIA, INC.,
    
                              Defendant.
    
    
                                                 COMPLAINT
    
             Plaintiffs, Communication Resources, Inc.  ("CRI") and Datacom Investments Limited
    
    ("Datacom"), by and through their undersigned attorneys and upon their own knowledge and upon
    
    information and belief as to all other matters, allege for their complaint herein as follows:
    
                                              Nature of the Action
    
             1.        This is an action brought pursuant to Section 220 of the General Corporation Law
    
    Delaware, 8 Del. C. $220 ("Section 220") to compel Defendant, Diginet Colombia, Inc. ("Diginet
    
    Colombia"), to make available for inspection and copying by Plaintiffs certain books and records of
    
    Defendant Diginet Colombia.
    
                                                   The Parties
    
             2.        Plaintiff CRT is a corporation formed under the laws of the British Virgin
    
    Since August 15, 1997, CRI has been the record owner of 1,620,OOO shares of Defendant Diginet
    
    Colombia common stock.
    
    
    RLFl-2079864-1
    
    
    
    
    SNIPPETS:
  • Plaintiffs, Communication Resources, Inc. and Datacom Investments Limited
  • $220 to compel Defendant, Diginet Colombia, Inc. ("Diginet
  • Since August 15, 1997, CRI has been the record owner of 1,620,OOO shares of Defendant Diginet
  • 1,620,OOO shares of Defendant Diginet Colombia common stock.
  • CRI purchased its shares in Defendant Diginet Colombia through a Stock Purchase
  • Diginet Colombia's parent corporation, Diginet Americas, Inc., Defendant
  • Diginet Americas is a facilities-based telecom provider offering services through its
  • Diginet Americas or its subsidiaries have
  • of each of the Stock Purchase Agreements provides that upon a Roll-Up Event,
  • Section 7 further provides that the Fair Market Percentage of Defendant Diginet
  • Defendant Diginet Colombia by the Exchange Ratio as defined in the Stock Purchase Agreements.
  • Securities and Exchange Commission under the Securities Act of 1933, as amended or a sale of
  • Americas, or a merger, consolidation or other transaction pursuant to
  • did sign the Section 7 waivers provided by Diginet Americas in connection with the 1998
  • Americas appointed Warburg to determine the fair market value of Diginet Americas and its
  • misrepresentations to the Plaintiffs to fraudulently induce them to execute the waivers of
  • The Valuation prepared by Warburg contains serious deficiencies.
  • purport to contain all of the information that may be required for the determination of the
  • demanding to inspect the books and records of Defendant Diginet Colombia.
  • The demand letter demanded the right, pursuant to Section 220, to inspect
  • and copy all of the demanded materials, or alternatively, order Defendant Diginet Colombia
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