Reynolds American defends against eleven shareholder lawsuits in Delaware Chancery Court
Clients Reynolds American Inc.
Jones Day is representing Reynolds American Inc. ("RAI") in eleven shareholder lawsuits in Delaware Chancery Court arising out of RAI's acquisition of Lorillard Inc. ("Lorillard"). On July 15. 2014, RAI and Lorillard entered into a merger agreement pursuant to which RAI agreed to acquire Lorillard in a cash and stock transaction valued at $27.4 billion (based on the closing price of RAI common stock on July 14. 2014), including the assumption of net debt. Plaintiffs allege that Lorillard's board of directors breached their fiduciary duties to Lorillard shareholders by agreeing to the transaction with RAI. Plaintiffs also allege that RAI and Lorillard aided and abetted the Lorillard directors' breaches of their fiduciary duties. Plaintiffs seek to enjoin the merger.
In re Lorillard Stockholders Litigation (Del. Ch.)