Defense lawyers at Sullivan & Cromwell and Debevoise & Plimpton have put to rest a derivative shareholder complaint accusing a Cablevision Systems Corp. compensation committee of awarding too much in pay and perks to members of the Dolan family that controls the company.
In a ruling Tuesday, Vice Chancellor John Noble in Delaware Chancery Court implied he was “troubled” by the committee’s actions, but deferred to its business judgment and dismissed the derivative suit. The plaintiff had argued that because the Dolans control more than 70 percent of Cablevision’s voting shares, the court should apply a more probing test than the business judgment rule, and scrutinize the entire fairness of the compensation. Noble rejected that approach.
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