Opinion ID: 1470259
Heading Depth: 1
Heading Rank: 3

Heading: Telx's Merger and Dismissal Motion

Text: In September 2006, while this litigation was proceeding, Telx closed the Merger with GI Partners Fund II, L.P., and GI Partners Side Fund II, L.P. (together GI). The Merger was approved by over 92% of Telx's stockholders. In the Merger, all of the outstanding shares of Telx stock were acquired by GI for nearly $15 per share. In addition, all the holders of Telx options and warrants received the same per share consideration, minus the applicable strike price. In total, GI paid the Telx security holders in excess of $213 million in the Merger. Following the Merger, the defendants moved to dismiss Feldman's complaint because, as a result of the Merger, Feldman ceased to own Telx stock. The motion to dismiss asserted, based upon the continuous ownership rule of Lewis v. Anderson , [5] that Feldman had lost standing to pursue derivative claims on behalf of Telx.