In the Court of Chancery of the State of Delaware in Re
IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE IN RE TRADOS INCORPORATED ) Consol. C.A. No. 1512-VCL SHAREHOLDER LITIGATION ) OPINION Date Submitted: May 21, 2013 Date Decided: August 16, 2013 David A. Jenkins, Michele C. Gott, Robert K. Beste, III, SMITH, KATZENSTEIN & JENKINS LLP, Wilmington, Delaware; Timothy J. McEvoy, CAMERON MCEVOY, PLLC, Fairfax, Virginia; Attorneys for Plaintiff Marc Christen. Raymond J. DiCamillo, Scott W. Perkins, RICHARDS, LAYTON & FINGER, P.A., Wilmington, Delaware; David J. Berger, Elizabeth M. Saunders, Steven Guggenheim, WILSON SONSINI GOODRICH & ROSATI, P.C., Palo Alto, California; Attorneys for Defendants David Scanlan, Lisa Stone, Sameer Gandhi, Joseph Prang, Klaus-Dieter Laidig, Joseph Campbell, and Jochen Hummel. John L. Reed, Scott B. Czerwonka, Andrew H. Sauder, DLA PIPER LLP, Wilmington, Delaware; Attorneys for Defendant Trados Inc. LASTER, Vice Chancellor. PN=@KO EeZ, 'vPiX[fjw fi k_\ v?fdgXepw( fYkX`e\[ m\ekli\ ZXg`kXc `e 0... kf support a growth strategy that could lead to an initial public offering. The VC firms received preferred stock and placed representatives on the Trados board of directors (the v>fXi[w(, =]k\inXi[j+ PiX[fj `eZi\Xj\[ i\m\el\ p\Xi-over-year but failed to satisfy its VC backers. In 2004, the VC directors began looking to exit. As part of that process, the >fXi[ X[fgk\[ X dXeX^\d\ek `eZ\ek`m\ gcXe 'k_\ vIELw( k_Xk Zfdg\ejXk\[ dXeX^\d\ek for achieving a sale even if the transaction yielded nothing for the common stock. In July 2005, SDL plc acquired Trados for $60 million in cash and stock (the vI\i^\iw(, Qe[\i PiX[fjyj Z\ik`]`ZXk\ f] `eZfigfiXk`fe+ k_\ I\i^er constituted a liquidation that entitled the preferred stockholders to a liquidation preference of $57.9 million.
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