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Business Organizations Keyed to Bauman
Malone v. Brincat
Citation:
722 A.2d 5 (Del. 1998).Facts
Mercury was a publicly-traded company engaged in purchasing installment sale contracts from car dealers and providing short-term installment loans. The plaintiffs were shareholders who owned stock in Mercury from 1993 through the time of this case. Plaintiffs alleged that beginning in 1994, Mercury’s directors made materially false assertions to the SEC and shareholders regarding the company’s financial position causing it to lose all of approximately $2 billion value. These assertions included egregious overstatements of Mercury’s earnings, financial performance, and shareholder equity.
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