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In re Trados Incorporated Shareholder Litigation
Citation:
73 A.3d 17 (2013)Facts
Trados, Inc. obtained venture capital in 2000 to support a growth strategy that could lead to an initial public offering. The VC firms received preferred stock and placed representatives on the Trados board of directors. Afterwards, Trados increased revenue year-to-year but failed to satisfy its VC backers. In July 2004, SDL plc acquired Trados for $60 million in cash and stock. The merger constituted a liquidation that entitled the preferred stockholders to a liquidation preference of $57.9 million. Plaintiff March Christen, who owned about 5% of Trados’s common stock, sued contending the board breached its fiduciary duty in failing to generate value for the common stock.
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Topic Resources
Topic Outline
Shareholders’ RightsTopic Refresher Course
Breach: Major and MinorTopic Charts & Notes
Parties Chart