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BLUE CHIP CAPITAL FUND II LTD. v. TUBERGEN

C.A. No. 1611-N.

906 A.2d 827 (2006)

BLUE CHIP CAPITAL FUND II LIMITED PARTNERSHIP, and Blue Chip IV Limited Partnership, Plaintiffs, v. Jerry L. TUBERGEN, Randall S. Damstra, Mary L. Campbell, William G. Petty, Jr., and HCS Infusion Services, Inc., Defendants.

Court of Chancery of Delaware, New Castle County.

Decided: August 22, 2006.

Attorney(s) appearing for the Case

Allen M. Terrell, Jr., Esquire, John D. Hendershot, Esquire, Grainne O. Murphy, Esquire, Richards, Layton & Finger, Wilmington, Delaware; L. Clifford Craig, Esquire, Russell S. Sayer, Esquire, Taft, Stettinius & Hollister LLP, Cincinnati, Ohio, Attorneys for the Plaintiffs.

John L. Reed, Esquire, Paul D. Brown, Esquire, Joseph B. Cicero, Esquire, Edwards Angell Palmer & Dodge LLP, Wilmington, Delaware, Attorneys for Defendants Jerry L. Tubergen, Randall S. Damstra, Mary L. Campbell, and William G. Petty, Jr.

J. Travis Laster, Esquire, Matthew F. Davis, Esquire, Abrams & Laster LLP, Wilmington, Delaware, Attorneys for Defendant HCS Infusion Services, Inc.

OPINION AND ORDER

LAMB, Vice Chancellor.

A minority preferred stockholder claims that the board breached the company's certificate of incorporation when, after the sale of substantially all of the company's assets, it distributed an inflated amount of the proceeds to the holders of a class of preferred stock which included the company's controller. The stockholder brings this suit both derivatively and directly against the individual directors for...

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