Chapter 16 - § 16.16 • FREEZE-OUT MERGERS, § 13(e)

• Jurisdiction: Colorado

§ 16.16 • FREEZE-OUT MERGERS, § 13(e)

Certain claims in a "freeze-out merger" context can be brought under § 13(e) of the 1934 Act. In Howing Co. v. Nationwide Corp.,⁴¹⁵ the court found that shareholders could make claims under § 13(e) for misleading proxy statements when the effect of the misstatements or omissions was to induce the shareholders to forfeit their remedy under state law to dissent.⁴¹⁶ This conclusion is arguably inconsistent with Virginia Bankshares, Inc. v. Sandberg.⁴¹⁷

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Notes:

^[415] Howing Co. v. Nationwide Corp., 972 F.2d 700 (6th Cir. 1992).

^[416] See also Wilson v. Great Am. Indus., Inc., 979 F.2d 924 (2d Cir. 1992).

^[417] Virginia Bankshares, Inc. v. Sandberg, 501 U.S. 1083 (1991).