The heightened level of takeover activity during recent years has provoked many innovative responses from the management of subject companies that wish to remain independent. Since successful acquisition of a company usually involves the termination of its existing management, that management will often seek to mobilize the resources of the subject corporation to oppose the takeover attempt. As a result, litigation initiated by management now plays a part in virtually every takeover contest. The case of Dan River, Inc. v. Icahn, a recent Fourth Circuit decision, illustrates the use of litigation to forestall a takeover attempt.
Carolyn C. Lavecchia & R. S. Nelson Jr.,
Dan River, Inc. v. Icahn: Disclosure Violations - Relief for Subject Management?,
U. Rich. L. Rev.
Available at: http://scholarship.richmond.edu/lawreview/vol18/iss2/6