Opinion ID: 2294957
Heading Depth: 2
Heading Rank: 4

Heading: The C-1 Preferred Held Common Stock At the Time of the Liquidation Event

Text: Finally, and to reiterate, under the charter, Omneon's preferred shareholders were entitled to their liquidation preference  [i]n the event of not before any . . . liquidation . . . of the Company. [41] Here, only the merger constituted a cognizable Liquidation Event under the charter definition, and the merger occurred after the conversion. To be entitled to their liquidation preference payment, the preferred shareholders would have to have been preferred shareholders at the time of the merger. They were not. Because the conversion validly converted the Series C-1 preferred into common shares before the Liquidation Event (the merger), the Series C-1 shareholders were no longer entitled to any liquidation preference at the time the merger took place.