FRONTFOUR CAPITAL GROUP LLC v. TAUBE

C.A. No. 2019-0100-KSJM.

FRONTFOUR CAPITAL GROUP LLC, and FRONTFOUR MASTER FUND, LTD., on behalf of themselves and similarly situated stockholders of MEDLEY CAPITAL CORPORATION, Plaintiffs, v. BROOK TAUBE, SETH TAUBE, JEFF TONKEL, MARK LERDAL, KARIN HIRTLER-GARVEY, JOHN E. MACK, ARTHUR S. AINSBERG, MEDLEY MANAGEMENT, INC., SIERRA INCOME CORPORATION, MEDLEY CAPITAL CORPORATION, MCC ADVISORS LLC, MEDLEY GROUP LLC, and MEDLEY, LLC, Defendants.

Court of Chancery of Delaware.

Decided: March 11, 2019.

Revised: March 22, 2019.


Attorney(s) appearing for the Case

A. Thompson Bayliss , J. Peter Shindel, Jr. , Daniel J. McBride , ABRAMS & BAYLISS LLP, Wilmington, Delaware; OF COUNSEL: Lori Marks-Esterman , Adrienne M. Ward , Nicholas S. Hirst , OLSHAN FROME WOLOSKY LLP, New York, New York; Attorneys for Plaintiffs FrontFour Capital Group LLC and FrontFour Master Fund, Ltd.

William M. Lafferty , John P. DiTomo , Daniel T. Menken , Aubrey J. Morin , MORRIS, NICHOLS, ARSHT & TUNNELL LLP, Wilmington, Delaware; OF COUNSEL: Jason M. Halper , Nathan M. Bull , Adam K. Magid , Matthew M. Karlan , CADWALADER, WICKERSHAM & TAFT, LLP, New York, New York; Attorneys for Defendants Brook Taube, Seth Taube, Jeff Tonkel, Medley Management Inc., MCC Advisors LLC, Medley Group LLC, and Medley LLC.

Blake Rohrbacher , Kevin M. Gallagher , Kevin M. Regan , Nicole M. Henry , RICHARDS, LAYTON & FINGER, Wilmington, Delaware; OF COUNSEL: Matthew L. Larrabee , Paul C. Kingsbery , Shriram Harid , DECHERT LLP, New York, New York, Joshua D.N. Hess , DECHERT LLP, Washington, D.C.; Attorneys for Defendant Sierra Income.

Garrett B. Moritz , Eric D. Selden , S. Michael Sirkin , ROSS ARONSTAM & MORITZ LLP, Wilmington, Delaware; OF COUNSEL: Alan R. Friedman , Samantha V. Ettari , Jared I. Heller , KRAMER LEVIN NAFTALIS & FRANKEL LLP, New York, New York; Attorneys for Defendants Mark Lerdal, Karin Hirtler-Garvey, John E. Mack, and Arthur S. Ainsberg.


MEMORANDUM OPINION

Due to the press of time,1 aspects of this decision lack polish or extended treatment.

March came in like a lion. Snow flurries and gray overcast covered downtown Wilmington for most of March's early days. The courthouse witnessed another flurry of activity during...

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