A Delaware Chancery Court ruling in shareholder litigation over Allergan's Botox marketing had some stinging language for the plaintiffs bar, but the sting was worse for Allergan and other defendants. Now, thanks to lawyers at Gibson Dunn and Morris Nichols, it's been erased.
Plaintiffs lawyers have been pretty resourceful in trying to leverage Dodd Frank say-on-pay rules into shareholder litigation payoffs. The courts, however, haven't been too cooperative.
A federal jury in Delaware found Friday that Cisco caused the demise of XpertUniverse by backing out of a business partnership with the tiny tech company. Cisco lost on one count of fraudulent concealment and on two counts of infringing XU patents on methods of putting businesses in touch with call-center experts.
It will be up to Delaware Chancellor Leo Strine Jr., not New York Supreme Court Justice Shirley Kornreich, to preside over the crucial next two months of arguments in shareholder litigation over NYSE Euronext's $8.2 billion sale to IntercontinentalExchange.
Shareholder M&A litigation is keeping a lot of lawyers awfully busy these days, especially in Delaware. But plaintiffs lawyers looking for guidance on a key provision of Delaware law related to such cases were turned away by the state's highest court this week, leaving them on the sidelines of derivative litigation over a $9 billion deal involving Freeport-McMoRan.
Last month we wondered if a shareholder suit against Qualcomm could become a legal turning point for efforts to shine the light of day on corporate political spending. Apparently Qualcomm and its lawyers at Covington & Burling and DLA Piper didn't want to take that gamble--or else they figured a little sunshine wouldn't do too much harm.
Even though objecting investors followed a novel "topping" proposal suggested by Delaware vice-chancellor J. Travis Laster, the judge rejected the deal because of the involvement of litigation financing firm Burford Capital.
Plaintiffs lawyers say they've been getting mixed messages from Delaware judges about how thoroughly they should investigate shareholder derivative claims. If they rush to sue, judges sometimes hold it against them. But if they take their time and first demand to see a company's books and records, judges may not save them a seat at the table.
Bank of America has a long, long way to go to escape the titanic litigation headache that it inherited with the acquisition of mortgage giant Countrywide Financial. But one case, at least, is now history.