A recent Delaware Court of Chancery opinion is required reading for those interested in the important distinction between corporate acts that are void as compared to voidable. In a 100-plus page decision in connection with approving a class action settlement and attorneys’ fees, the Court of Chancery engages in a deep doctrinal dive and scholarly
class action settlement
Chancery Awards Fees in Disclosure Only Settlement
By Francis Pileggi on
Posted in Court of Chancery Updates
In re: Paetec Holding Corp. Shareholders Litigation, C.A. No. 6761-VCG (Del. Ch. Mar. 19, 2013).
This Chancery opinion explains why attorneys’ fees were awarded in the amount of $500,000 based on a settlement of a challenge to a merger that resulted in additional disclosures prior to the deal closing. This is an excellent overview…
Chancery Addresses Non-Disbursement of Class Action Settlement Funds
By Francis Pileggi on
Posted in Court of Chancery Updates
In Norberg v. Security Storage Co. of Washington, C.A. No. 12885-VCN (Del. Ch. Nov. 19, 2012), the Court of Chancery addressed the issue of how to deal with funds from a class action settlement–approved many years ago, that have not yet been fully disbursed.
Brief Overview: The class action settlement in this case was…
Fee Award Discounted Due to Boilerplate Claims
By Francis Pileggi on
Posted in Court of Chancery Updates
Dias v. Purches, C.A. No. 7199-VCG (Del. Ch. Oct. 1, 2012).
Issue Addressed: This case discussed the award of counsel fees in connection with a class action settlement. The court discounted the amount that would otherwise be awarded due to the majority of boilerplate claims that were added to the single meritorious one.
Brief …
Dismissal of One Derivative Lawsuit Not Bar to Second Derivative Claim by Second Stockholder
By Francis Pileggi on
Posted in Court of Chancery Updates
Louisiana Municipal Police Employees’ Retirement Systems v. Pyott, C.A. 5795-VCL (Del. Ch. June 11, 2012).
Issues Addressed
Whether collateral estoppel, Rule 23.1 or Rule 12(b)(6) apply to require the dismissal of a Delaware derivative suit based on the dismissal in California of a related derivative suit in which a federal court granted a Rule 23.1…
Chancery Preliminarily Approves Derivative Settlement but Gives Objectors Conditional Option to Proceed with Case
By Francis Pileggi on
Posted in Court of Chancery Updates
Forsythe v. ESC Fund Management Co. (U.S.), Inc., C.A. No. 1091-VCL (Del. Ch. May 9, 2012).
Issue Addressed
Whether the settlement of a derivative action that the Court considered fair should be approved despite the objections of the named plaintiffs.
Short Answer
The Court explained that the settlement could still be approved even if…
Noteworthy 2011 Corporate and Commercial Decisions from Delaware’s Supreme Court and Court of Chancery
Noteworthy 2011 Corporate and Commercial Decisions from Delaware’s Supreme Court and Court of Chancery.
By: Francis G.X. Pileggi and Kevin F. Brady.
Introduction
This is the seventh year that we are providing an annual review of key Delaware corporate and commercial decisions. During 2011, we reviewed and summarized approximately 200 decisions from Delaware’s Supreme Court…
Chancery Determines Framework to Award Attorneys’ Fees Involving Changed Deal Protections
By Francis Pileggi on
Posted in Court of Chancery Updates
In re Compellent Technologies, Inc. S’holder Litig., Del. Ch., Consol. C.A. No. 6084-VCL (Dec. 9, 2011).
This summary was prepared by an associate at Eckert Seamans.
Issue Addressed: Despite the length of this fifty-four page opinion, the only issue involved was the proper amount of attorneys’ fees. The Court noted that it has…
Federal Court De-certifies Class Action Due to Misconduct of Class Counsel
By Francis Pileggi on
Posted in Other Court Decisions
Creative Montessori Learning Center v. Ashford Gear LLC, No. 11-8020, (7th Cir. Nov. 22, 2011) (Posner, J.) read opinion here. This decision of the U.S. Court of Appeals for the 7th Circuit finds its place on this blog primarily because it addresses the conduct of class action counsel which is a…
Chancery Court Approves Class Action Settlement Regarding Chicago Board Options Exchange
By Francis Pileggi on
Posted in Court of Chancery Updates