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., >
and GENEVA SUB, INC., 1
>
Defendants. >
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>
IN RE NCS HEALTHCARE, INC., ) Consolidated
SHAREHOLDERS LITIGATION. ) C.A. No. 19786
MEMORANDUM OPINION AND ORDER
Submitted: October 24,2002
Decided: October 29,2002
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 Plaintifi
Omnicare, Inc. in C. A. No. 19800.
Robert J. Kriner, Jr., Esquire, CHIMICLES & TIISELLIS, LLP, Wilmington,
Delaware; Joseph A. Rosenthal, Esquire, ROSENTHAL, MONHAIT, GROSS &
GODDESS, P-A., Wilmington, Delaware; Richard B. Bemporad, Esquire,
LOWEY DANNENBERG BEMPORAD & SELINGER, P.C., White Plains, New
York; Daniel A. Osbom, Esquire, BEATIE AND OSBORN, LLP, New York, New
York, Attorneys for Plaintiffs in C. A. No. 19786.
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 NC'S
Healthcare, Inc., Boake A. Sells, and Richard L. Osbourne.
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
SNIPPETS:
IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
Robert J. Kriner, Jr., Esquire, CHIMICLES & TIISELLIS, LLP, Wilmington, Delaware; Joseph A.
These actions arise out of a proposed merger between NCS
Healthcare, Inc. and a wholly owned subsidiary of Genesis Health Ventures, Inc. in
which each share of NCS Class A Common Stock and Class B Common Stock is
Class A shares and the Class B shares are identical in most respects;
The agreement and plan of merger among the parties (the "Merger Agreement")
was approved by the NCS board of directors and executed on July
execution of two separate voting agreements among Genesis and NCS and Jon H.
Outcalt, Chairman of the Board, and Kevin Shaw, President of NCS and a Board
Outcalt and Shaw each separately agreed to vote all of his shares in favor of the
Common Stock, they together controlled more than 65% of the total voting power,
The plaintiff in Civil Action No. 19800, Omnicare, Inc., made a proposal
The court refused to dismiss Count I of Omnicare's complaint, which is the subject of the
There are three provisions in the NCS Charter of relevance to this litigation,
Omnicare also refers to a fourth Charter provision, Section 7, which defines the term
with a solicitation of proxies does not constitute a transfer of Class B stock.
The giving of a proxy in connection with a solicitation of proxies subject to the provisions
he Stockholder hereby irrevocably and unconditionally agrees to vote or to cause to be voted
Plaintiffs further argue that Section 7is inapplicable to the proxy
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