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Dan River, Inc. V. Icahn: Disclosure Violations - Relief For Subject Management?, Carolyn C. Lavecchia, R. Stephen Nelson Jr.

University of Richmond Law Review

The heightened level of takeover activity during recent years has provoked many innovative responses from the management of subject companies that wish to remain independent. Since successful acquisition of a company usually involves the termination of its existing management, that management will often seek to mobilize the resources of the subject corporation to oppose the takeover attempt. As a result, litigation initiated by management now plays a part in virtually every takeover contest. The case of Dan River, Inc. v. Icahn, a recent Fourth Circuit decision, illustrates the use of litigation to forestall a takeover attempt.