News & Events

On October 13, 2011, in a 38-page decision, Vice Chancellor Parsons in the Court of Chancery of the State of Delaware dismissed shareholder litigation challenging the acquisition of Alloy, Inc. (“Alloy”), one of the country’s largest providers of media and marketing programs targeting the youth consumer segments, by an investor group led by ZelnickMedia.  The shareholder plaintiffs alleged, among other things, that Alloy’s directors breached their fiduciary duties in connection with approval of the merger agreement, and that the investor group aided and abetted the alleged breaches of fiduciary duty.  Simpson Thacher represented the investor group, including ZelnickMedia, Natixis Caspian Private Equity, Rosemont Solebury Co-Investment Fund and GenSpring Family Offices.  The Simpson Thacher litigation team included Chet Kronenberg and Peter Jordan in the Los Angeles office.  Chet Kronenberg argued the motion to dismiss on behalf of the investor group.