IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
IN AND FOR NEW CASTLE COUNTY
OMNICARE, INC., ))
Plaintiff, 1)
v. -- ) C.A. No. 19800
>
NCS HEALTHCARE, INC., JON H. )
OUTCALT, KEVIN B. SHAW, BOAKE )
A. SELLS, RICHARD L. OSBOURNE, )
GENESIS HEALTH VENTURES, INC., 1
and GENEVA SUB, INC., >>
Defendants. )
MEMORANDUM OPINION AND ORDER
Submitted: October 24, 2002
Decided: October 25, 2002
Donald J. Wolfe, Jr., Esquire, Kevin R. Shannon, Esquire, Michael A.
Pittenger, Esquire, John A. Seaman, Esquire, POTTER ANDERSON &
CORROON LLP, Wilmington, Delaware; Robert C. Myers, Esquire, Seth C.
Farber, Esquire, James P. Smith III, Esquire, David F. Owens, Esquire, Melanie
R. Moss, Esquire, DEWEY BALLANTINE LLP, New York, New York;
Attorneys for Plaint@ Omnicare, Inc.
Edward P. Welch, Esquire, Edward B. Micheletti, Esquire, Katherine J.
Neikirk, Esquire, James A. Whitney, Esquire, SKADDEN ARPS SLATE
MEAGHER & FLOM, LLP, Wilmington, Delaware; Mark A. Philips, Esquire,
Megan L. Mehalko, Esquire, H. Jeffrey Schwartz, Esquire, BENESCH,
FRIEDLANDER, COPLAN & ARONOFF LLP, Cleveland, Ohio; Attorneys for
Defendants NCS Healthcare, Inc., Boake A. Sells, and Richard L. Osboume.
Jon E. Abramczyk, Esquire, MORRIS, NICHOLS, ARSHT & TUNNELL,
Wilmington, Delaware; Frances Floriano Goins, Esquire, Thomas G. Kovach,
Esquire, SQUIRES, SANDERS & DEMPSEY, LLP, Cleveland, Ohio; Attorneys
for Defendant John H. Outcalt
Edward M. McNally, Esquire, Michael A. Weidinger, Esquire, Elizabeth A.
Brown, Esquire, MORRIS, JAMES, HITCHENS & WILLIAMS, LLP,
Wilmington, Delaware; James R. Bright, Esquire, Timothy G. Warner, Esquire,
SPIETH, BELL, McCURDY & NEWELL CO., L.P.A., Cleveland, Ohio;
Attorneys for Defendant Kevin B. Shaw
David C. McBride, Esquire, Bruce L. Silverstein, Esquire, Christian Douglas
SNIPPETS:
IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
OUTCALT, KEVIN B. SHAW, BOAKE)
GENESIS HEALTH VENTURES, INC., 1
Defendants.
Jon E. Abramczyk, Esquire, MORRIS, NICHOLS, ARSHT & TUNNELL, Wilmington, Delaware; Frances
This action arises out of a proposed merger between a Delaware
The complaint alleges that the target corporation's directors
breached their fiduciary duties to the target corporation's stockholders.
provisions restricting the transfer of the target's high-voting common stock,
into single-vote common stock.
The defendants have moved to dismiss, arguing that the plaintiff lacks
the public disclosure of the merger agreement and associated voting agreements.
The plaintiff argues that it has standing because it is now a stockholder and is
before plaintiff acquired shares in the target corporation.
Therefore, if any breach of fiduciary duty occurred, it occurred before plaintiff
was ever owed a fiduciary duty by the target corporation's directors.
The plaintiff in this action is Omnicare, Inc., a Delaware
NCS Healthcare, Inc. is a Delaware corporation with its principal
We would also consider a stock transaction in order to allow NCS
violated 8 Del.
When deciding a motion to dismiss a complaint under Court of Chancery
Public Policy Detests The "Purchase" Of A Lawsuit
Delaware's policy against allowing plaintiffs to purchase stock and then
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