Delaware trial to test validity of NOL poison pill

For the first time in years, a trial beginning in the US state of Delaware will test the validity of a "poison pill" stockholder rights plan. In particular, the trial deals with the validity of the plan adopted by a software company to protect Net Operation Loss Carry-Forwards, an accounting technique allowing the company to reduce tax liability, which often cannot be applied in the event the company's ownership changes hands. The defendant corporation is alleged to have triggered the poison pill deliberately, and is now counterclaiming that the rights plan is invalid.

Delaware trial to test validity of NOL poison pill law.com Sun, Apr 26, 2009