Can the shareholders of dumont recover in a suit

Assignment Help Business Law and Ethics
Reference no: EM131390628

The boards of directors of DuMont Corp. and Epsot, Inc., agreed to enter into a friendly merger, with DuMont Corp. to be the surviving entity. The stock of both corporations was listed on a national stock exchange.

In connection with the merger, both corporations distributed to their shareholders proxy statements seeking approval of the proposed merger. The shareholders of both corporations voted to approve the merger. About three weeks after the merger was consummated, the price of DuMont stock fell from $25 to $13 as a result of the discovery that Epsot had entered into several unprofitable long-term contracts two months before the merger had been proposed.

The contracts will result in substantial losses from Epsot's operations for at least the next four years. The existence and effect of these contracts, although known to both corporations at the time of the proposed merger, were not disclosed in the proxy statements of either corporation. Can the shareholders of DuMont recover in a suit against DuMont under the 1934 Act? Explain.

Reference no: EM131390628

Questions Cloud

Write a program that converts yards to the number of feet : Write a program that converts yards to the number of feet, as well as the number of inches (e.g., there are 10.5 feet in 3.5 yards, and there are 126.0 inches in 3.5 yards).
Research one of the bioethical issues : Research one of the Bioethical issues below and submit a 300 word essay using the submission link above.This assignment must be original writing and in your own words
What exemptions from registration are available to capricorn : Based on these facts, what exemptions from registration, if any, are available to Capricorn, and what conditions would each of these available exemptions impose on the terms of the offer?
Find the angular velocity ?f at which resonance will occur : A 60-lb disk is attached with an eccentricity e = 0.006 in. to the midpoint of a vertical shaft AB which revolves at a constant angular velocity ωf . Knowing that the spring constant k for horizontal movement of the disk is 40,000 lb/ft,
Can the shareholders of dumont recover in a suit : The existence and effect of these contracts, although known to both corporations at the time of the proposed merger, were not disclosed in the proxy statements of either corporation. Can the shareholders of DuMont recover in a suit against DuMont ..
How are viruses classified : How are viruses classified? Explain the process by which a single microscopic bacteriophage can produce a plaque in a lawn of bacteria that is visible to the naked eye: infection, replication etc.
Is farthing liable in given contention : Farthing defends on the ground that she lost money on the transactions in question. Is Farthing liable? If so, under which provisions and for what amount of money?
Longer periods of time due to excellent conditioning : Athletes in all sports focus on aerobic conditioning. Use your knowledge of aerobic respiration and lactic acid fermentation to explain why performance is improved if more oxygen can reach the cells for longer periods of time due to excellent cond..
Who is liable in given contention : A class action suit is brought against Jackson, Lucas, Mammon, and Intercontinental for violations of Rule 10b-5. Who, if anyone, is liable?

Reviews

Write a Review

Business Law and Ethics Questions & Answers

  Analyze potential issue surrounding the death of john wife

Analyze the potential issue surrounding the death of John's wife and other potential litigants against PharmaCARE as a result of AD23

  Describes the main aspects of the regulatory environment

Write a paper that describes the main aspects of the regulatory environment which will protect the public from fraud within corporations, Pay particular attention to SOX requirements

  Is legitimacy really motivates a large powerful organization

Do you believe that legitimacy really motivates a large, powerful organization such as Wal-Mart?- Is acceptance by other people a motivation for individuals as well? Explain.

  Identifying the laws that apply to the business

Your text states "The first step in compliance clearly involves identifying the laws that apply to the business, the regulators who have jurisdiction in specific areas, the risks the business faces and legal issues that may arise

  The constitutional rights of prisoners may be held in

the constitutional rights of prisoners may be held in abeyance during the time they are on probation or parole. they

  Discuss the ethical considerations for christine

Discuss the ethical considerations for Christine and her company. What implications must Christine consider when making her decision? Why? How might Christine's role as a female expatriate affect her employer's response if she passes on the assign..

  Purchase and assumption method or the payoff method

Would a wealthy individual with bank accounts of more than $100,000 prefer the FDIC to use the purchase and assumption method or the payoff method to liquidate failed banks? Why?

  Pros and three cons for each potential business formation

Identify three business formations that you believe Gloria could consider as appropriate for her business. Define each chosen business formation. Explain at least three pros and three cons for each potential business formation

  Write paper about righs of criminal justice employees

My Research paper is about Righs of criminal justice employees, Everyone who finds themselves on the opposing end of the Criminal Justice System is entitled to certain protections every step of the way, beginning even before the arrests

  Prevent and detect the frauds

Financial Statement Fraud Motivators: Just a few paragraphs. Just a discussion.There are many situations that may motivate managers to commit financial statement fraud.

  How much time has the service member ever served

Violence in the Military- Are combat veterans at more of a risk to be a part of domestic violence? How much time has the service member ever served in a combat zone area

  What specific language in the u.s. supreme court decision

What specific language in the U.S. Supreme Court decision may have contributed to the ongoing debate to overrule Roe v. Wade?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd