Delaware Court of Chancery Vice Chancellor Tamika Montgomery-Reeves has tossed a shareholder’s derivative case against the board of security company ADT Corp., saying the complaint largely mirrored an ill-fated prior suit that challenged the same actions.
Both cases stemmed from a series of concessions board members made to activist investor Keith A. Meister shortly after ADT spun off from Tyco International and began trading publicly in October 2012. Meister, through his investment firm Corvex Management, bought about 5 percent of ADT’s outstanding stock and lobbied the board to issue debt securities to bankroll stock repurchases.
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