In re Paramount Communications Inc. Shareholder Litigation

Chimicles & Tikellis LLP served as co-liaison counsel and participated extensively in the representation of the public shareholders of Paramount Communications Inc. in the hostile battle between Viacom Inc. and QVC Network for control of Paramount. The shareholder plaintiffs and QVC were successful in persuading the Delaware Court of Chancery to enjoin the merger agreement between Paramount and Viacom on grounds that the agreement, including the lockup provision, unfairly impeded a proper process to maximize shareholder value in the sale and control of Paramount. The Delaware Supreme Court affirmed the Chancery Court’s decision. Given the “level playing field” achieved by plaintiffs’ litigation efforts, Viacom won the contest with a bid valued in excess of $80 per share, well above its original bid of approximately $69.00 per share.