Board directors for travel company Orbitz did not breach their fiduciary duties when they approved a services agreement in which the corporation promised to pay a shortfall to entities affiliated with its controlling shareholder if it does not process a guaranteed minimum of air, car and hotel reservations through the controlling shareholder, Delaware Court of Chancery Chancellor Andre G. Bouchard has ruled.
Travelport Ltd., which allegedly owned 48 percent of Orbitz Worldwide Inc., entered an agreement in February 2014 with Orbitz in which, among other provisions, Orbitz would be required starting Jan. 1, 2015, to meet a minimum guarantee of volume of bookings with Travelport or pay a shortfall fee.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
