PARK EMPLOYEES' AND RETIREMENT BOARD EMPLOYEES' ANNUITY AND BENEFIT FUND OF CHICAGO v. SMITH

C.A. No. 11000-VCG.

PARK EMPLOYEES' AND RETIREMENT BOARD EMPLOYEES' ANNUITY AND BENEFIT FUND OF CHICAGO, derivatively and on behalf of Bioscrip, Inc., Plaintiff, v. RICHARD M. SMITH, MYRON Z. HOLUBIAK, CHARLOTTE W. COLLINS, SAMUEL P. FRIEDER, DAVID R. HUBERS, RICHARD L. ROBBINS, STUART A. SAMUELS, GORDON H. WOODWARD, KIMBERLEE C. SEAH, HAI V. TRAN, PATRICIA BOGUSZ, KOHLBERG & CO., L.L.C., KOHLBERG MANAGEMENT V, L.L.C., KOHLBERG INVESTORS V, L.P., KOHLBERG PARTNERS, V, L.P., KOHLBERG TE INVESTORS V, L.P., KOCO INVESTORS V, L.P., and JEFFERIES LLC, Defendants, and BIOSCRIP, INC., Nominal Defendant.

Court of Chancery of Delaware.

Decided: April 18, 2017.


Attorney(s) appearing for the Case

Pamela S. Tikellis , A. Zachary Naylor , and Vera G. Belger , of CHIMICLES & TIKELLIS LLP, Wilmington, Delaware; OF COUNSEL: Catherine Pratsinakis , of CHIMICLES & TIKELLIS LLP, Haverford, PA; Carol V. Gilden , of COHEN MILSTEIN SELLERS & TOLL PLLC, Chicago, Illinois; Richard A. Speirs and Kenneth Rehns , of COHEN MILSTEIN SELLERS & TOLL PLLC, New York, New York, Attorneys for Plaintiff Park Employees' and Retirement Board Employees' Annuity and Benefit Fund of Chicago.

Stephen P. Lamb and Matthew D. Stachel , of PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP, Wilmington, Delaware; OF COUNSEL: Leslie Gordon Fagen , Daniel J. Kramer , and Robert N. Kravitz , of PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP, New York, New York, Attorneys for Defendants Kohlberg & Co., L.L.C., Kohlberg Management V, L.L.C., Kohlberg Investors V, L.P., Kohlberg Partners V, L.P., Kohlberg TE Investors V, L.P., and KOCO Investors V, L.P.

David C. McBride , Martin S. Lessner , Tammy L. Mercer , and Nicholas J. Rohrer , of YOUNG CONAWAY STARGATT & TAYLOR, LLP, Wilmington, Delaware; OF COUNSEL: Jonathan Rosenberg and William J. Sushon , of O'MELVENY & MYERS LLP, New York, New York, Attorneys for Defendant Jefferies LLC.

Gregory P. Williams , Brock E. Czeschin , and Sarah A. Clark , of RICHARDS, LAYTON & FINGER, P.A., Wilmington, Delaware; OF COUNSEL: Jay Lefkowitz, P.C., Joseph Serino, Jr., P.C., and Shireen A. Barday , of KIRKLAND & ELLIS LLP, New York, New York, Attorneys for Nominal Defendant BioScrip, Inc. and Defendants Richard M. Smith, Myron Z. Holubiak, Charlotte W. Collins, Samuel P. Frieder, David R. Hubers, Richard L. Robbins, Stuart A. Samuels, Gordon H. Woodward, Kimberlee C. Seah, Hai V. Tran, and Patricia Bogusz.


MEMORANDUM OPINION

I am in the unusual position here of issuing a second decision granting a motion to dismiss in a single matter. Court of Chancery Rule 15(aaa) is designed to prevent such a situation. Here, under the good-cause rationale of Rule 15(aaa), I granted the Defendants' first motions to dismiss,...

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