A Delaware judge has issued a temporary restraining order against Tyson Foods, restraining the company “from prosecuting or proceeding in any manner whatsoever with the lawsuit filed by Tyson in the Chancery Court of Washington County, Arkansas.”
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Vice Chancellor Leo E. Strine, a judge in Delaware Court of Chancery, reaffirmed his position that Delaware has “exclusive jurisdiction” over legal issues involving Tyson’s decision last month to discontinue its purchase of IBP. He rejected Tyson’s continued attempts to conduct litigation on the matter in Arkansas by having the restraining order issued today.
Due to a confidentiality agreement signed by both companies in December 2000, the judge ruled earlier this week that Delaware court “has the jurisdictional authority to hear all of the claims between the parties; the Arkansas courts do not.” Even though Tyson’s legal representatives indicated they would abide by this decision, the company later publicly stated its intent to continue legal action in Washington County, Arkansas, where Tyson headquarters is based.
IBP filed the Delaware suit March 30 to force Tyson to honor its agreement to complete the acquisition of IBP. Company officials have stated that Tyson’s reasons for backing out of the deal “are completely unjustified.” A trial date has been set for May 14.
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By GlobalData
