UIP Founder Again Dodges Stock Suit Revived by Delaware Justices

A UIP Cos. founder dodged a challenge to a stock issue aimed partly at breaking a deadlock with his co-founder’s widow by diluting her stake, with Delaware’s top trial judge doubling down on her previous ruling after the lawsuit was revived on appeal.

Chancellor Kathaleen St. Jude McCormick threw the case out a second time, saying UIP co-founder Steven Schwat did no more than than respond to hardball legal tactics by implementing the succession plan he and his late partner had “developed on a clear day before any deadlock loomed.”

Schwat ultimately broke the tie by issuing long-promised equity to ...