IN RE DIGEX, INC. SHAREHOLDERS LITIGATION

Civ. A. No. 18336.

789 A.2d 1176 (2000)

In re DIGEX, INC. SHAREHOLDERS LITIGATION.

Court of Chancery of Delaware, New Castle County.

Decided: December 13, 2000.


Attorney(s) appearing for the Case

Stuart M. Grant, Megan D. McIntyre, and Jeffrey D. Hofferman, of Grant & Eisenhofer, P.A., Joseph A. Rosenthal, of Rosenthal Monhait Gross & Goddess, P.A., and Pamela S. Tikellis, of Chimicles & Tikellis, Wilmington; Daniel C. Girard, of Girard & Green, LLP, San Francisco, California; and James S. Notis, of Abbey, Gardy & Squitieri, LLP, New York, New York, of counsel, for Plaintiffs.

Robert K. Payson and Stephen C. Norman, of Potter Anderson & Corroon LLP, Wilmington; Brian J. Gallagher and John A. Morris, of Kronish Lieb Weiner & Hellman LLP, New York, New York, of counsel, for Defendants Intermedia Communications Inc., John C. Baker, Philip A. Campbell, George F. Knapp, Robert M. Manning, and David C. Ruberg.

Henry E. Gallagher, Jr. and Collins J. Seitz, of Connolly Bove Lodge & Hutz LLP, Wilmington; Brian J. McMahon and Stephen R. Reynolds, of Gibbons, Del Deo, Dolan, Griffinger & Vecchione, Newark, New Jersey, of counsel, for Defendant WorldCom, Inc.

William O. LaMotte, III, of Morris Nichols Arsht & Tunnell, Wilmington; Kevin M. McGinty, of Mintz Levin Cohn Ferris Glovsky and Popeo, Boston, MA, of counsel, for Digex, Inc.


OPINION

CHANDLER, Chancellor.

                                        TABLE OF CONTENTS

    I. FACTUAL & PROCEDURAL HISTORY ............................................................. 1181
       A. Intermedia investigates strategic alternatives ........................................ 1181
       B. Digex appoints a Special Committee .................................................... 1183
       C. WorldCom enters...

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