Frederick Hsu v. Oak Hill

Mike and Kara worked on behalf of Oak Hill.

Court of Chancery of Delaware

Oak Hill needed to explain that the decline in value of a web domain parking company was not the result of an improper cash-accumulation strategy that sought to hoard value for preferred shareholders, but due to a fundamental decline in the industry leading to plummeting revenue (described as “a melting ice cream cone”). Oak Hill also needed to demonstrate that even if all of the company’s income had been reinvested to promote long-term growth, it would not have generated returns sufficient to create value for common stockholders. The trial resulted in a precedent-setting decision from the Delaware Chancery Court on behalf of Oak Hill.

(Click images to enlarge.)