Court of Chancery of Delaware

In a stockholder derivative suit challenging the propriety of a series of preferred stock redemptions undertaken by defendant-Primedia corporation, controlling stockholder and directors' motions to dismiss for failure to state a claim upon which relief could be granted are denied where, on the current record, the court could reasonably infer that the controlling stockholder, facilitated by the acquiescence of the director defendants, engaged in a course of self-dealing such that it breached its duty of loyalty to the corporate enterprise.

Appellate Information

• Decided 11/15/2006
• Published 11/30/2006

Judges

Court

• Court of Chancery of Delaware

Counsel

• For Appellant:
  
• Jessica Zeldin, Rosenthal, Monhait & Goddess, P.A., Wilmington, DE;  James S. Notis, Gardy & Notis, L.L.P., Englewood Cliffs, NJ;  Judith L. Spanier, Abbey Spanier Rodd Abrams & Paradis, L.L.P., New York City, for the Plaintiffs.


• For Appellees:
  
• Anne C. Foster, John D. Hendershot, Grainne O. Murphy, Richards Layton & Finger, P.A., Wilmington, DE;  Peter E. Kazanoff, William G. Ferullo, Simpson Thacher & Bartlett, L.L.P., New York City, for Defendants Primedia Inc., Beverly C. Chell, Dean B. Nelson, Timothy D. Dattels, Meyer Feldberg, H. John Greeniaus, David Bell, and Kelly P. Conlin., A. Gilchrist Sparks III, Jonathan G. Strauss, Morris Nichols Arsht & Tunnell, L.L.P., Wilmington, DE, for Defendants Henry R. Kravis, Perry Golkin, Thomas Uger, Joseph Y. Bae, and Kohlberg Kravis Roberts & Co., L.P.