M&A Freeze-Out Ruling Underscores Minority Investor Rights

On July 13, in Van Horne v. Ben-Dov, Justice Jennifer Schecter of the New York County Commercial Division preliminarily enjoined a New York City real estate company's contemplated freeze-out merger.

The court's reasoning was that the majority shareholder had failed to show a legitimate corporate purpose that would be achieved by the proposed merger. This ruling follows a trend in this area in the Commercial Division.

To continue reading Stephen Younger and Danielle Quinn's article in Law360, please click here.