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Litigation

: Delaware Business Litigation Report

Court Of Chancery Limits Remedy For Charter Breach

By Edward M. McNally

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Fletcher International Inc. v. ION Geophysical Corp.,  C.A. 5109-VCP (March 24, 2010)

When a provision in a certificate of incorporation is violated, the question that often arises is what is the remedy. Often the Court  will enjoin the violation, but not always. Here the prefererd stock had approval rights for certain corporate transactions. Those rights were violated. Finding that an injunction would cause more harm than was merited, the Court denied the injunction and remitted  a damages remedy to the plaintiff.

Full post as published by Delaware Business Litigation Report on March 24, 2010 (boomark / email).

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