Delaware Supreme Court Upholds Net Operating Loss Poison Pill
11 October 2010
Mayer Brown Legal Update
The Delaware Supreme Court has upheld the adoption of a poison pill with a 4.99 percent trigger designed to protect a company’s net operating losses (NOLs) and the subsequent adoption of a “reloaded” poison pill to protect against future threats to those net operating losses. This is the first time in a number of years that the court has addressed the validity of a shareholder rights plan.