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DexCom, Inc. (DXCM) Message Board

seabiscuit505 5 posts  |  Last Activity: Jul 4, 2014 12:22 AM Member since: Aug 6, 2003
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  • seabiscuit505 by seabiscuit505 Jul 4, 2014 12:22 AM Flag

    Two Companies Say Yes to New 'Loser Pays' Optionat The Wall Street Journal(Thu, Jul 3)

  • Dole Foods Co. and E. I. du Pont de Nemours & Co. also lobbied privately against the bill, according to people familiar with the matter.

    The legislature instead agreed to study the issue over the next few months and take it up again when they return in January.

    Most lawyers say they don’t expect big public companies to adopt these bylaws in the meantime, but rather to wait and see what the state assembly does.

    Echo Therapeutics, however, appears to be in an unusual situation. It recently faced a lawsuit and a proxy fight from hedge fund Platinum Partners, which owns nearly 20% of its shares and accused the company of reneging on an agreement to put a Platinum nominee on its board. The lawsuit was withdrawn in February and the director in question was elected at Echo’s annual meeting last month. A week later, the company adopted its new bylaw.

    Added the Echo spokeswoman: “In recent months, Echo has . . . been forced to incur significant resources responding to litigation and threats from activist investors . . . . [T]he Echo Board determined that the adoption of a fee-shifting bylaw provision and its potential effect in deterring future frivolous litigation was in the best interests of all shareholders.”

    Christopher Davis, a lawyer for Platinum, said the bylaw is of “questionable legality” and that the fund is considering its legal options.

    “At a time where the trends in activism suggest boards are becoming more accountable to shareholder concerns, to see that kind of entrenchment is deeply troubling,” he said

  • Need a Real Sponsor here July 3, 2014, 4:02 PM ET.Two Companies Say Yes to New ‘Loser Pays’ Option.ByLiz Hoffman
    Update: This post was updated Thursday afternoon to include comment from Echo Therapeutics.

    Two companies have decided to seize a newly created opportunity to shift corporate legal fees to shareholders.

    Such “loser pays” bylaws, which require any investors who sue a company and lose to pay their costs, have been much discussed in recent weeks, after a recent Delaware Supreme Court decision appeared to open the door to them.

    Yet Echo Therapeutics Inc., a Philadelphia-based maker of medical devices, and LGL Group Inc., an electrical-components maker, appear to be the first companies to adopt them, doing so last month, regulatory filings show.

    LGL did not respond to requests for comment. A spokeswoman for Echo said “Echo’s Board and management team believe that it is in our shareholders’ best interests to focus our limited resources on our ongoing product development efforts rather than responding to frivolous litigation.”

    The new bylaws are the latest sign that some companies are eager to discourage shareholder litigation, which has become more common over the past few years. Lawsuits followed 94% of corporate merger announcements last year, for example, and rarely resulted in substantial gains for shareholders.

    Some critics expressed hope in the wake of the Delaware Supreme Court’s decision that fee-shifting bylaws could deter these cases by essentially making it more expensive to sue and lose.

    But the issue quickly got complicated, exposing rifts within the corporate community.

    Within two weeks, a section of the Delaware state bar association drafted a bill to ban companies from adopting such bylaws, arguing it would unfairly hurt shareholders with good cases. The Delaware legislature was set to vote on the bill last month, but tabled it under criticism from business interests, including the U.S. Chamber of Commerce.

    Dole Foods Co. and E. I.

  • This is effing repugnant. Lawsuits can only follow

  • SEC filing: Doman and Echo Board estimates they will spend ~$450,000 fighting us shareholders

    Follow and Google DDbuyer twitter as this thing moves along

    Vote the Gold and take these incumbent crooks out of office. We the shareholders are about to take the company back from it's thievous board who have destroyed 96% OF VALUE. They are toast so vote early and often. Get the vote out. Very important.. Platinum is aligned with us with $18.6 million invested at higher levels

    Vote for the two Goldbergs. No to Doman

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