IN RE COGENT, INC. SHAREHOLDER LITIGATION

Civil Action No. 5780-VCP.

7 A.3d 487 (2010)

In re COGENT, INC. SHAREHOLDER LITIGATION.

Court of Chancery of Delaware.

Decided: October 5, 2010.


Attorney(s) appearing for the Case

Blake A. Bennett, Esquire , Cooch & Taylor, P.A., Wilmington, Delaware, Delaware Liaison Counsel for Plaintiffs; Shane Rowley, Esquire , Juan E. Monteverde, Esquire , Faruqi & Faruqi, LLP, New York, New York; Vahn Alexander, Esquire , Faruqi & Faruqi, LLP, Los Angeles, California, Plaintiffs' Co-Lead Counsel; Michael Hanrahan, Esquire , Paul A. Fioravanti, Jr., Esquire , Kevin H. Davenport, Esquire , Prickett, Jones & Elliott, P.A., Wilmington, Delaware, Plaintiffs' Co-Lead Counsel; Marc A. Topaz, Esquire , Lee D. Rudy, Esquire , Michael C. Wagner, Esquire , James H. Miller, Esquire , Plaintiffs' Co-Lead Counsel; Ryan M. Ernst, Esquire , Cross & Simon, LLC, Wilmington, Delaware, Delaware Liaison Counsel for Plaintiffs; Joseph Levi, Esquire , Shannon Hopkins, Esquire , Levi & Korsinsky, LLP, New York, New York, Plaintiffs' Co-Lead Counsel.

Donald J. Wolfe, Jr., Esquire , Matthew E. Fischer, Esquire , Dawn M. Jones, Esquire , Kerrianne M. Fay, Esquire , Potter Anderson & Corroon LLP, Wilmington, Delaware; Erik J. Olson, Esquire , Morrison & Foerster LLP, Palo Alto, California; Sean T. Prosser, Esquire , Kimberly S. Greer, Esquire , Morrison & Foerster LLP, San Diego, California, Attorneys for Cogent, Inc., Ming Hsieh, John C. Bolger, John P. Stenbit, and Kenneth R. Thornton.

Daniel A. Dreisbach, Esquire , John D. Hendershot, Esquire , Patrick W. Flavin, Esquire , Richards, Layton & Finger, P.A., Wilmington, Delaware; Howard S. Zelbo, Esquire , Meredith E. Kotler, Esquire , Cleary Gottlieb Steen & Hamilton LLP, New York, New York, Attorneys for Defendants 3M Company and Ventura Acquisition Corporation.


OPINION

PARSONS, Vice Chancellor.

This matter involves a stockholder challenge to a two-step acquisition in which a third-party acquirer has agreed to commence a tender offer for the target corporation's stock to be followed by a backend merger at the same tender offer price. Plaintiffs allege that the target's board of directors breached its fiduciary duties by agreeing to recommend that its stockholders accept the acquirer's tender offer of $10.50 per...

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