Agostino v. Hicks

In Agostino v. Hicks, 845 A2d 1110, 1119 n 35 [Del Ch 2004].), the court acknowledged that, in sustaining direct claims that directly attack the fairness of a merger, the distinction between direct and derivative claims was necessarily collapsing: "It is unclear why a 'direct' challenge to a merger price is ipso facto a 'direct' claim." The Agostino court squared Parnes by recognizing that post-Kramer courts, in allowing direct claims to go forward where the complaint directly attacked the merger, are moving to a merits-based analysis in distinguishing direct and derivative claims. (Agostino, 845 A2d at 1120-1122.) The court went on to articulate its own inquiry to distinguish the claims: whether the harm alleged to the shareholder is dependent on a prior harm to the corporation. (Id.)