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SUTHERLAND v. SUTHERLAND

C.A. No. 2399-VCL.

958 A.2d 235 (2008)

Martha S. SUTHERLAND, as Trustee of the Martha S. Sutherland Revocable trust dated August 18, 1976, Plaintiff, v. Perry H. SUTHERLAND, Todd L. Sutherland, and Mark B. Sutherland, Defendants, and Dardanelle Timber Co., Inc., and Sutherland Lumber Southwest, Inc., Nominal Defendants.

Court of Chancery of Delaware.

Decided: May 5, 2008.

Attorney(s) appearing for the Case

J. Travis Laster, Esquire, Matthew F. Davis, Esquire, Abrams & Laster, LLP, Wilmington, DE; Bonita L. Stone, Esquire, Stewart T. Kusper, Esquire, Katten Muchin Rosenman, LLP, Chicago, IL, for the Plaintiff.

Robert S. Saunders, Esquire, Skadden Arps Slate Meagher & Flom, LLP, Wilmington, DE, for the Individual Defendants.

A. Gilchrist Sparks, III, Esquire, S. Mark Hurd, Esquire, Jay N. Moffitt, Esquire, Morris Nichols Arsht & Tunnell, LLP, Wilmington, DE, for the Nominal Defendants.

OPINION

LAMB, Vice Chancellor.

This case concerns a derivative (and double derivative) complaint filed by a 25% stockholder of a closely held corporation with the support of her brother, who is also a 25% stockholder of the corporation. In response to the matters alleged in the complaint, the companies established a one-man Zapata special litigation committee to conduct an investigation. The committee has finished its investigation, memorialized...

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