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Intersections Board Members Must Face Class Action Over 2018 Buy

Feb. 28, 2020, 12:40 AM

Board members of the credit management and identity protection services provider Intersections, Inc. can’t escape a shareholder class action over the company’s 2018 purchase because the plaintiff adequately alleged their interests may have been at odds with other shareholders, the Delaware Chancery Court ruled.

Even the use of an independent special committee wasn’t enough to cleanse the transaction from the specter of a conflicted board, because the committee wasn’t empowered early enough in the process, Vice Chancellor Sam Glasscock III said, denying the defendants’ motion to dismiss.

Intersection had over 1.1 million subscribers in 2018 when it concluded a ...