Kevin LaCroix on The D&O Diary highlights an April 2012 report written by Stanford Business School Professor Robert Daines and Cornerstone Research Principal Olga Kourmian entitled “Recent Developments in Shareholder Litigation Involving Mergers and Acquisitions”.
Among the noteworthy, Delaware-related findings are the following:
- With respect to merger litigation involving Delaware corporations, the share of M&A lawsuits filed in Delaware was higher in 2011 as compared to 2007. However, challenges to the same deal in both Delaware and some other state(s) are now more common than in 2007.
- The report indicates that most M&A shareholder suits settle and often settle quickly, with the large majority only involving additional disclosures and not cash awards.
- In 2011, 96% of deals involving $500 million or more attracted litigation, but smaller deals also attracted litigation as well.
- The report also surveys the average fee awards in these suits.