In Kahn v. Kevin McCarthy, et al., (Del. Ch., Sept. 24, 2008), read letter opinion here, the Delaware Chancery Court denied a request for a TRO in connection with a bank merger, and rejected the argument that the shareholders should be allowed to wait for the rescue from the federal government’s $700 billion "rescue legislation" proposed by Treasury Secretary Paulson (that was not approved yet at the time of the TRO application).
The shareholder requested that the Court enter a temporary restraining order (“TRO”) prohibiting defendants from proceeding with or consummating the merger of PFF Bancorp, Inc (“PFF”) with and into FBOP Corporation (FBOP). Defendants in this case, PFF and the individual directors of PFF, oppose the TRO and have filed a motion to stay the proceedings in this Court.
The Court determined in a short letter opinion that the prerequisites of a TRO had not been met, but that there was a basis to stay the Delaware case in favor of a related California class action.