N.J. Court Affirms Dismissal Of Del. Suit Over Merger of Defense Firms

A challenge to the merger of U.S. defense contractor DRS Technologies Inc. with Italian defense contractor Finmeccanica SpA was properly dismissed by the lower court, the New Jersey Superior Court, Appellate Division decided Feb. 27 after applying Delaware law (Scheidt v. DRS Technologies Inc.).

In May 2008, plaintiff Jim Scheidt, a shareholder in Delaware-incorporated DRS, filed a direct action against the company, its board, and its general counsel alleging self-dealing and breach of fiduciary duties in connection with the Finmeccanica merger. In January 2010, after shareholders and regulators approved the merger and the deal was consummated, the lower ...