A Court Upholds Technicolor's Take
IT WAS A CLOSELY WATCHED case in the shareholder-rights world, and shareholders did not fare well. Capping a 12-year legal battle, the Delaware Supreme Court upheld a lower court ruling that threw out a suit against Technicolor, the company acquired in 1983 by billionaire Ronald Perelman. Cinerama, a 4.4% shareholder of Technicolor, charged directors of the company with failing to get a fair price when they sold to Perelman. But the court opted not to punish the directors for not actively searching for a higher bidder. "This does make it somewhat harder to hold directors liable," says Columbia law professor John Coffee.