Zaslav, SiriusXM Board Defend Reshuffle in Investor Lawsuit (2)

Warner Bros. Discovery Inc. CEO David Zaslav and other Sirius XM Holdings Inc. directors defended on Friday the independence of the negotiators who recommended a restructuring plan they said aimed to free the company from a controlling stockholder.

Their arguments prompted the chief judge of the Delaware Chancery Court to ponder whether the board’s reliance on the negotiators’ independence in approving the restructuring, even if the directors lacked independence from an interested party, protects them from investors’ claims that minority shareholders got shortchanged.

Chancellor Kathaleen St. Jude McCormick said she was trying to test the limits of the board’s arguments ...