Chancellor Rules for Disney Board in Ovitz Shareholder Case
The shareholder suit against Disney over the $140 million severance package is over (for now). The trial court ruled last night that Disney's board of directors did not violate their fiduciary duties to the company's shareholders when they granted the severance deal to Michael Ovitz. The plaintiffs' lawyers have said they will appeal. A few notes:
- According to most of the news reports, the Chancellor's decision was 175 pages long. When's the last time you received a 175 page decision from a trial judge? Are they counting the transcript of oral argument?
- The L.A. Times has some excerpts from the ruling that chastise Disney's board, its CEO Michael Eisner, Ovitz, and the decisions that each made leading to this case.
- Despite the attention the case has gotten (Google News currently shows 340 reports on the ruling), it is just a trial court's decision applying existing law to the facts of a specific case. It carries slightly more precedential value in a Tennessee dispute than the case in My Cousin Vinny - partly because the prosecutor dismissed that case.
Post A Comment / Question