Indeed, with the LTWs the distance from champerty is even greater, as the litigation proceeds are simply a reference number, like LIBOR, and do not have a direct connection to the securities.
Because the legal claim was now reified--incorporated in the sense of having a legal identity separate from the plaintiff--the LTWs not only solved the merger pricing problem but also forced a change in the accounting of a second merger, (114) had a role in the mechanics of a third merger, (115) and were part of the consideration of the redemption of some preferred securities, (116) all of which occurred before the Cal Fed deal closed.
(107) Golden State was similarly clear that the resulting conflict between it and the LTW holders was resolved in its favor:
Perhaps to reassure LTW holders that the claim conduct would be managed well, Golden State and Cal Fed entered a "litigation management agreement" to govern the conduct of the two goodwill claims--Golden State's claim and Cal Fed's claim.
Additional contract award options in excess of $12 M remain available for future production of the LTWS
. Developed by Raytheon and the US Army, the LTWS
combines rugged, lightweight construction with Raytheon's advanced thermal imaging technology to give the infantry man the ability to shoot equally well day or night, through battlefield obscurants, adverse weather and zero-illumination situations.
As part of the Golden State-Cal Fed merger, both the Golden State LTWs and the Cal Fed participation rights were governed by the Litigation Management Agreement, which demarcated precisely how the litigation would be managed.
2012) (discussing the tax problem that LTWs solved); see also Ozturk, supra note 89, at 22 (stating the tax difference between LPCs and LTWs).
Golden State's LTWs were also held in reserve to be distributed to those who had the right to Golden State common stock via convertible securities but had not yet exercised that right as of the record date.
Shortly thereafter LTW holders began negotiating with the WaMu estate.