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DIETERICH v. HARRER

No. Civ.A. 024-N.

857 A.2d 1017 (2004)

Kevin DIETERICH, on behalf of himself and all other similarly situated, Plaintiff, v. James A. HARRER, Donald R. Farrow, Phillip E. Pearce, John R. Snedegar, Barry W. Sullivan, Borland Software Corporation, a Delaware corporation, Dale L. Fuller, Frederick A. Ball, Keith E. Gottfried, and Douglas W. Barre Defendants.

Court of Chancery of Delaware, New Castle County.

Decided August 3, 2004.

Attorney(s) appearing for the Case

Elizabeth M. McGeever, Tanya P. Jefferis, Prickett, Jones & Elliott, P.A., Wilmington, Delaware; Daniel C. Girard, Aaron M. Sheanin, Anthony K. Lee, Girard Gibbs & DeBartolomeo LLP, San Francisco, California, for the Plaintiff, of counsel.

R. Judson Scaggs, Jr., Charles D. Reed, Morris, Nichols, Arsht & Tunnell, Wilmington, Delaware; David J. Berger, Jared L. Kopel, Kent W. Easter, Tasneem Dohadwala, Wilson Sonsini Goodrich & Rosati, P.C., Palo Alto, California, for the Defendants.

OPINION AND ORDER

LAMB, Vice Chancellor.

I.

A stockholder of a company that was acquired in a merger brings a complaint alleging that the former directors violated their duty of loyalty in connection with the pursuit of alternative transactions that, eventually, resulted in the merger. In this opinion, the court concludes that some of the claims alleged are derivative in nature and, therefore, that the plaintiff has lost standing to pursue...

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