Thompson v. Enstar Corp.

HARTNETT, Vice Chancellor.

This is my decision on the applications for preliminary injunctions which must be denied because the plaintiffs have not borne their burden at this preliminary injunction stage of showing the reasonable probability that the challenged acts of the defendants are not protected by the business judgment rule.

I

Two lawsuits have been filed challenging certain acts of the directors of Enstar Corporation (“Enstar”), a Delaware corporation. Both suits arise because of an ongoing proxy contest being waged in connection with the annual meeting of Enstar and because of a pending…