Where Reason Still Rules Regarding Rights Plans

Law360 ( July 26, 2010, 1:47 PM EDT) -- In the 25 years since their seminal decision in Moran v. Household International, Delaware's Court of Chancery has consistently taken a rational and reasoned approach whenever called upon to determine the appropriateness of a shareholder rights plan. While we don't have the space to review all recent Delaware decisions in this short column, we will attempt to highlight how Delaware case law has evolved along with rights plans, or so-called poison pills, and the changing economic realities....

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