Log in
Login
Password
Remember
Lost password
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  Shares  >  Nyse  >  AutoNation, Inc.    AN   US05329W1027

AUTONATION, INC. (AN)

16
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

AutoNation, Inc. : Nine companies sued over "exclusive forum" bylaws

02/07/2012 | 09:33pm US/Eastern

(Reuters) - Chevron Corp (>> Chevron Corporation) and eight other corporations were sued by shareholders on Tuesday for adopting a bylaw that requires common types of shareholder lawsuits be brought exclusively in Delaware's Chancery Court.

"Exclusive forum" bylaws are being adopted by more and more corporations as a way to control a surge in shareholder litigation, though the move has been resisted by shareholders.

The interest in the bylaw comes as shareholders are increasingly bringing simultaneous lawsuits making nearly identical claims in two or more courts, often challenging merger deals.

Tuesday's lawsuits said the nine companies adopted the bylaw to reduce the risk that directors would be found liable.

"(The bylaw) was initiated, timed, structured and approved to benefit the directors at the expense of the stockholders," said the lawsuits.

Shareholders have resisted being forced to bring claims for breach of fiduciary duties and other matters of Delaware corporate law in the state's Chancery Court, which is often perceived as being overly protective of management at the expense of shareholders.

Some companies have adopted the "exclusive forum" through shareholder votes to amend charters, while others such as Facebook Inc have adopted them ahead of an initial public offering. The nine companies that were sued by shareholders adopted the bylaw by a vote of the board of directors.

In addition to Chevron, the companies are Priceline.com Inc (>> Priceline.com Inc), Franklin Resources Inc (>> Franklin Resources, Inc.), SPX Corp (>> SPX Corporation), Autonation Inc (>> AutoNation, Inc.), Superior Energy Services Inc (>> Superior Energy Services, Inc.), Danaher Corp (>> Danaher Corporation), Navistar International Corp (>> Navistar International Corporation) and Curtis Wright Corp (>> Curtiss-Wright Corp.).

The lawsuits were all brought by the Kessler Topaz Meltzer & Check LLP and Prickett, Jones & Elliott PA law firms.

(Reporting By Tom Hals; Editing by Bernard Orr)

By Tom Hals

React to this article
Latest news on AUTONATION, INC.
06/29 AUTONATION : Schedules 2nd Quarter 2015 Earnings Conference Call and Audio Webca..
06/24 AUTONATION : Announces Second Quarter 2015 Earnings Conference Call and Audio We..
06/12 AUTONATION : Change in Directors or Principal Officers (form 8-K)
06/11 AUTONATION : Announces Vehicle Giveaway in California to Celebrate 10 Millionth ..
06/04 AUTONATION : Announces Vehicle Giveaway in California to Celebrate 10 Millionth ..
06/04 AUTONATION : Announces Vehicle Giveaway in Texas to Celebrate 10 Millionth Vehic..
06/03 AUTONATION : sells 10 millionth vehicle, releases May sales figures (BRIEF)
06/03 AUTONATION : gets May boost from US brands, luxury vehicles
06/03 AUTONATION : Regulation FD Disclosure, Financial Statements and Exhibits (form 8..
06/03 AUTONATION : Announces Reported Retail New Vehicle Unit Sales of 31,777 in May 2..
Advertisement
Chart
Duration : Period :
AutoNation, Inc. Technical Analysis Chart | AN | US05329W1027 | 4-Traders
Income Statement Evolution
More Financials