Ashby & Geddes Team Obtains Key Decision On Appraisal Rights.

Resolving a long-running dispute about the scope of Delaware appraisal rights, the Court of Chancery ruled in favor of Ashby & Geddes’ clients when concluding that more than 8 million shares of stock held in a nominee’s name and acquired after the record date for a merger were entitled to appraisal without “tracing” the voting directions of prior beneficial owners.  In reaching that conclusion, Chancellor William B. Chandler III agreed that Delaware law imposes no “tracing” requirement on appraisal petitioners acquiring stock after the record date but before the merger.  See In re: Appraisal of Transkaryotic Therapies, Inc., Del. Ch., May 2, 2007 (read opinion here).