Fisher v. Tails, Inc.

At issue in this case was the sale of Tails, Inc. Tails was organized as a Virginia corporation but changed its state of incorporation to Delaware as part of a Plan of Reorganization and Purchase Agreement pursuant to which all of the assets of Tails were eventually sold to Buena Suerte Holdings, Inc. Certain Minority Shareholders filed a complaint demanding shareholder appraisal rights, seeking a declaratory judgment regarding whether the transactions leading to the sale gave rise to appraisal rights for the Minority Shareholders and requesting monetary damages for violations of the alleged appraisal rights. The circuit court sustained Tails’s demurrer to the complaint, noting (1) changing the Tails corporate domicile from Virginia to Delaware did not trigger appraisal rights, and (2) the complaint failed to state facts sufficient to support the causes of action. The Supreme Court affirmed, holding (1) the domestication of Tails as a Delaware corporation did not entitle the Minority Shareholders to appraisal rights; and (2) Delaware law properly applied in determining whether the Minority Shareholders were entitled to appraisal rights, and, under Delaware law, they were not. View "Fisher v. Tails, Inc." on Justia Law