In Re Quest Software, Inc. Shareholders Litigation, Cons., C.A. No. 7357-VCG (Del. Ch. Nov. 12, 2013).
Issue Addressed: Whether attorneys’ fees were appropriate in connection with this suit which was commenced to enjoin a merger during a go-shop, during which a superior deal emerged, mooting the initial claim.
The Court awarded less than half of the fees requested and perhaps one of the more noteworthy parts of the letter opinion is the following observation:
This case raises issue of the proper timing of litigation in the hyper-expedited world of merger litigation, with potential injunctive relief providing the best, and perhaps only, remedy. As with burglary, so with merger litigation; the greatest utility comes from the watch dog biting the burglar on the way in, not the way out.
In sum, the Court found that the lawsuit contributed to the results achieved by the directors on behalf of the stockholders and therefore the award was appropriate.