Breached Their Fiduciary Duties to the Common Stockholders by Entering Into the Proposed Transactions
IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE FRONTFOUR CAPITAL GROUP ) LLC, and FRONTFOUR MASTER ) FUND, LTD., on behalf of themselves ) and similarly situated stockholders of ) MEDLEY CAPITAL ) CORPORATION, ) ) Plaintiffs, ) ) v. ) C.A. No. 2019-0100-KSJM ) BROOK TAUBE, SETH TAUBE, ) JEFF TONKEL, MARK LERDAL, ) KARIN HIRTLER-GARVEY, JOHN ) E. MACK, ARTHUR S. AINSBERG, ) MEDLEY MANAGEMENT, INC., ) SIERRA INCOME CORPORATION, ) MEDLEY CAPITAL ) CORPORATION, MCC ADVISORS ) LLC, MEDLEY GROUP LLC, and ) MEDLEY, LLC ) ) Defendants. ) MEMORANDUM OPINION Date Submitted: March 9, 2019 Date Decided: March 11, 2019 Date Revised: March 22, 2019 A. Thompson Bayliss, J. Peter Shindel, Jr., Daniel J. McBride, ABRAMS & BAYLISS LLP, Wilmington, Delaware; OF COUNSEL: Lori Marks-Esterman, Adrienne M. Ward, Nicholas S. Hirst, OLSHAN FROME WOLOSKY LLP, New York, New York; Attorneys for Plaintiffs FrontFour Capital Group LLC and FrontFour Master Fund, Ltd. William M. Lafferty, John P. DiTomo, Daniel T. Menken, Aubrey J. Morin, MORRIS, NICHOLS, ARSHT & TUNNELL LLP, Wilmington, Delaware; OF COUNSEL: Jason M. Halper, Nathan M. Bull, Adam K. Magid, Matthew M. Karlan, CADWALADER, WICKERSHAM & TAFT, LLP, New York, New York; Attorneys for Defendants Brook Taube, Seth Taube, Jeff Tonkel, Medley Management Inc., MCC Advisors LLC, Medley Group LLC, and Medley LLC. Blake Rohrbacher, Kevin M. Gallagher, Kevin M. Regan, Nicole M. Henry, RICHARDS, LAYTON & FINGER, Wilmington, Delaware; OF COUNSEL: Matthew L. Larrabee, Paul C. Kingsbery, Shriram Harid, DECHERT LLP, New York, New York, Joshua D.N. Hess, DECHERT LLP, Washington, D.C.; Attorneys for Defendant Sierra Income. Garrett B. Moritz, Eric D. Selden, S. Michael Sirkin, ROSS ARONSTAM & MORITZ LLP, Wilmington, Delaware; OF COUNSEL: Alan R.
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