At&T CORP. v. Lillis

STEELE, Chief Justice.

Plaintiffs-appellees, who are former directors and officers of MediaOne Corp., seek compensation for stock options 1 that were cashed out in a 2004 merger between AT & T Wireless and Cingular. Me-diaOne originally granted its directors and officers options under a 1994 stock option plan. An anti-destruction, anti-dilution clause in that 1994 stock option plan preserved the option holders’ “economic position” upon the happening of certain specified events, including a merger.

AT & T acquired MediaOne in a stock for stock merger in 1999. In that merger,…