Grade the following statement, made in 2000 by the Honorable Louis Stanton, the judge hearing the Bernie Madoff civil case:
Second, a stock split divides only the outstanding shares of a corporation. "Delaware law, which is controlling under the terms of the Agreement, defines `outstanding' stock as that which can be voted and therefore is `construed to mean stock in the hands of shareholders, not stock in the treasury.'"
(Satterfield v. Monsanto, 88 F.Supp.2d 288, March 27, 2000).
Is His Honor correct?
If not, why not?
Extra Credit: In light of this, is Judge Stanton competent to handle the complex Madoff civil case now before him?
88 F. Supp. 2d 288.pdf
Earlier: Ponz. Boy Settles