Examples of Derivative Claims in a sentence
Moving beyond their standard of review argument, the plaintiffs say that the Merger price is materially suspect because of the Board’s failure to value the Derivative Claims.
No rational inference emerges from the record that the Board or its advisors viewed the Derivative Claims as being valuable or something a rational acquiror would pay for, except in the sense of having some value in potentially reducing the Disaster Fall-Out that any acquiror of Massey would assume.
Thus, although it would have been better for the Board to have received clearer advice from a more independent source, the Board’s ultimate decision about whether to sign the Merger Agreement does not seem to have been influenced in any material manner by a desire to limit the Board’s exposure to the Derivative Claims.
In reaching my conclusions about the effect of the Derivative Claims on the board’s deliberative process, I have carefully considered the plaintiffs’ argument that a January 2011 draft of the Merger Agreement, written by Cravath, supports the inference that the Board sought to sell the company to avoid personal liability for the Derivative Claims.
The parties further agree that, as a material part of and material inducement for the transactions contemplated by this Agreement, they will not assert any Derivative Claims in any dispute, claim or controversy relating to or arising out of this Agreement.