Levy v. Sterling Holding Company LLC, (D.Del., Feb. 23, 2007), read opinion here.  In this decision of the United States District Court for the District of Delaware, the court agreed with the Securities and Exchange Commission that the stock conversion completed as part of a spin off of Fairchild Semiconductor Corp. was not an illegal short-swing trading under federal securities laws.  The court granted summary judgment to National Semiconductor Corp. and Sterling Holding Corp. and dismissed the shareholders suit.