Stockholders Allege Director/Employee Options Undervalued; No Independent Appraisal Evident

Business Valuation UpdateVol. 3 No. 9
Legal and Court Case Update
September 1997
3556 Food Products Machinery
333241 Food Product Machinery Manufacturing
breach of fiduciary duty
breach of fiduciary duty, fair market value (FMV)

Noerr v. Specialty Equipment Companies
1997 Del. Ch. LEXIS 121
July 16, 1997
US
State Court
Delaware
Court of Chancery
Jacobs

Summary

Before the court is a motion to dismiss based on the plaintiff's allegation of a breach of fiduciary duties.

See Also

Noerr v. Specialty Equipment Companies

At issue is whether the defendants breached their fiduciary duty of loyalty by granting themselves options at an exercise price far below the shares' market value in a self-dealing transaction.