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Business Organizations Keyed to Chasalow, 3rd Ed.
Long Island Lighting Company v. Barbash
Citation:
779 F.2d 793 (1985)Facts
LILCO, a public utility serving Long Island, was embroiled in controversy over its construction of the Shoreham Nuclear Power Plant and service issues following Hurricane Gloria. Defendant Matthews, who owned LILCO stock, had demanded a special shareholders meeting and requested LILCO’s stockholder list to communicate with shareholders about electing a new Board and possibly selling LILCO to local counties. The Citizens Committee published an advertisement in Newsday criticizing LILCO’s management and advocating for a publicly owned power authority. LILCO filed suit claiming the advertisement violated proxy solicitation rules by containing false and misleading statements intended to influence shareholders before the upcoming meeting. The district court limited discovery to one day, allowing only Matthews to be questioned, and then granted summary judgment for defendants, holding that the proxy rules did not apply to the advertisements.
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