Archive: September 18, 2017

CHANCERY COURT DISMISSES STOCKHOLDERS’ BREACH OF FIDUCIARY DUTY AND AIDING AND ABETTING CLAIMS RELATING TO STOCK-FOR-STOCK MERGER

By Remsen Kinne and Calvin Kennedy

In In re MeadWestvaco Stockholders Litigation, the defendants moved to dismiss class action claims brought by stockholders of MeadWestvaco Corporation (the “Company”) for breach of fiduciary duty and aiding and abetting claims relating to the Company’s board of director’s approval of a strategic stock-for-stock merger of equals entered into between the Company and Rock-Tenn Company that closed in 2015.  The court held that the complaint did not contain factual allegations sufficient to state a claim against the directors for bad faith in connection with the approval of the merger.

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