News & Noteworthy

Case Development - Bruce Bronster and David Graff Secure Win for Client in Delaware Chancery Court Case of First Impression
MARCH 08, 2013

On January 31, 2012, Bruce Bronster (Partner, New York) and David Graff (alumnus) successfully caused the Delaware Chancery Court to issue an Order to Show Cause favoring our client, Peter E. Deutsch, and against ZST Digital Networks, Inc. ("ZSTN"), directing ZSTN to demonstrate why our client's request for a Contempt Order against the company and a put right at book value of at least $30 million dollar for his shares in the Company should not be granted.

The Contempt Order arises out of ZSTN's failure to comply with an Order the Firm previously obtained for our client, requiring ZSTN to produce its books and records for inspection and directing ZSTN to pay our client's counsel fees and costs associated with obtaining the Order. When ZSTN failed to comply with that Order, the Firm moved for contempt seeking, among other things, a put right at book value for our client. The issue of whether failure to produce books and records warrants a put right to an investor denied access was an issue of first impression for the Delaware Courts.

The case is Deutsch v. ZST Digital Networks, Inc.

Windels Marx helps you harness opportunity and mitigate risk with a team that provides your business with the service, quality and value essential to a trusted relationship.