The Delaware Supreme Court on Tuesday revived a derivative challenge to Diamond Resorts International’s $2 billion sale to Apollo Global Management, ruling that shareholders should have been informed of the chairman’s opposition to the deal.
The ruling from a three-judge panel of the high court reversed a “stark” decision from Vice Chancellor Tamika Montgomery-Reeves in July, which found that the reasoning behind Stephen J. Cloobeck’s abstention from a board vote recommending the sale was immaterial to investors’ decision to support the transaction.
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