The aggrieved shareholders 1st must argue with the court that state law should not prevent them from pressing the 2-year-old class action lawsuit against the medtech giant, according to a StarTribune article.
If suing shareholders win that case, they will still have to present a future trial to seek settlements from the company, according to the report.
Medtronic’s legal representatives are arguing that the case should have never made it to the state’s supreme court, saying that Minnesota business law protects decisions made by the company’s board of directors from shareholder litigations, according to the report.
Shareholders in the case disagree, arguing that the law doesn’t cover issues that arise with inversions like Medtronic performed.
Medtronic knew about the taxes that would be imposed on shareholders who’s stock was not protected through tax-deffered accounts, such as IRAs, according to the report. Despite that knowledge, board members supported the deal, even covering a $69 million special excise tax imposed to discourage such inversions. Minnesota law requires board members consider not only corporate interests, but also shareholders who would have to pay taxes because of the deal.
The trial, which was tossed out in 2014, was reinstated last February by the state Court of Appeals, and will aim to determine whether the action from Medtronic heart only a subset of shareholders or all of them equally, according to the report.
The post Minn. Supreme Court to hear investors suit over Medtronic inversion appeared first on MassDevice.
from MassDevice http://ift.tt/2dPNgN3
Cap comentari:
Publica un comentari a l'entrada