Northwest Investment Corp. v. Wallace

STREIT, Justice.

“This is a story about control.” 1 Minority shareholders who were required to re deem their shares after a reverse stock split refused to accept the corporation’s offer to buy back their shares. They complained the offer did not include the additional amount a buyer would theoretically pay to own a controlling interest in the corporation. The district court held the proper valuation of the minority shareholders’ stock included a control premium. On appeal, we must determine (1) whether Iowa’s statute requiring a corporation in a reverse stock split to pay the shareholders…