The Delaware Court of Chancery has dismissed a stockholder suit challenging the $2.9 billion merger of oilfield services company C&J Energy Services and a Bermuda-based subsidiary of a competitor, finding the plaintiffs’ claims were subject to deferential review under the business judgment rule.
Chancellor Andre G. Bouchard on Wednesday said the plaintiffs, members of a Miami workers’ retirement plan, had failed to invoke the more stringent entire fairness review because there was no reason to believe the March 2015 stockholder vote, in which nearly 98 percent of shares were in favor of the transaction, was uninformed.
