In Re The Bear Stearns Companies, Inc. Shareholder Litigation, (Del. Ch., April 9, 2008), read opinion here, (Hat Tip to Prof. Steve Davidoff). Yesterday the Delaware Chancery Court stayed the litigation in Delaware over the Bear Stearns imbroglio in favor of pending litigation in New York involving substantially the same issues and parties. The quote from the opinion highlighted by Prof. Davidoff follows:
In this case, considering that the New York court has scheduled an expedited preliminary injunction hearing, the issues presented involve application of established precedents of Delaware corporate law to an unusual set of facts, which is unlikely to recur, and the persuasive practical reasons against embarking unnecessarily on a collision course with our sister court in New York in these extraordinary circumstances, I find Defendants have shown that failing to stay this action would result in overwhelming hardship.