On July 7, the Delaware Court of Chancery issued an opinion in Sagarra Inversiones v. Cementos Portland Valderrivas in which the court denied a plaintiff’s motion for a status quo order that would prohibit the defendant from transferring funds pursuant to a stock purchase agreement during the pendency of the litigation.
This case involves a minority shareholder plaintiff’s claims that the defendant forced the acquisition of a company through its self-dealing because of its position as the majority shareholder on both sides of the transaction, which allegedly resulted in an excessive acquisition price being paid to the defendant. In its complaint, the minority shareholder plaintiff sought, among other things, money damages, an order enjoining the payment of additional funds under the stock purchase agreement, and a rescission of the stock purchase agreement.
