Wells v. Shearson Lehman/American Express, Inc.

OPINION OF THE COURT

Kupferman, J.

In 1984, the principal officers of Metromedia paid approximately $1.1 billion for the company's publicly held shares. This was the culmination of a process begun in December 1983. At that time, Metromedia's management announced a buyout proposal. Following that announcement, nine separate stockholders brought suit in Delaware, alleging the price offered was inadequate. In March 1984, the parties settled, securing somewhat better terms for the stockholders. The settlement agreement contained a release from future claims for the defendants therein and their…