Primedia Inc.’s shareholders can proceed with their derivative lawsuit alleging that the company’s $525 million sale to TPG Capital LP improperly benefited the company’s largest shareholder, Kohlberg Kravis Roberts & Co., the Delaware Chancery Court has ruled. In issuing the decision, the court held that the merger must be reviewed under the entire-fairness doctrine because of the possibility that KKR received a special benefit from the merger after Primedia’s board opted not to seek profits the investment firm allegedly obtained as a result of insider trading in 2002.
Vice Chancellor J. Travis Laster issued the 74-page opinion in In re Primedia Shareholders Litigation.
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