In re Toys “R” Us, Inc., Shareholder Litigation

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Full Text of Court Cases
June 22, 2005
5945 Hobby, Toy, and Game Shops
451120 Hobby, Toy, and Game Stores
breach of fiduciary duty
control premium, gordon growth model, discounted cash flow (DCF), comparable transactions method

In re Toys “R” Us, Inc., Shareholder Litigation
2005 Del. Ch. LEXIS 90
US
State Court
Delaware
Court of Chancery
A. Rick Atwood Jr., Andre G. Bouchard, Carmella P. Keener, Darren J. Robbins, Edward B. Micheletti, Emily C. Komlossy, James A. Whitney, Jerry C. Harris, Joel Friedlander, Joel H. Bernstein, Jon E. Abramczyk, Joseph M. McLaughlin, Kay P. Lawson, Martin
Credit Suisse First Boston
Strine

Summary

One of the issues was whether the board’s financial advisor, Credit Suisse First Boston (First Boston), correctly excluded a control premium in its assessment of the company’s value, and, thus, whether the board failed to reasonably consider the value of ...
In re Toys “R” Us, Inc., Shareholder Litigation
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See Also

Control Premium Not Needed for DCF Analysis Using Gordon Growth Model

One of the issues was whether the board’s financial advisor, Credit Suisse First Boston (First Boston), correctly excluded a control premium in its assessment of the company’s value and, thus, whether the board failed to reasonably consider the value of all relevant alternatives.