• Delaware Court Awards $2.4M Fee Award for “Loosening” Deal Protections
  • December 21, 2011 | Authors: Steven M. Haas; G. Roth Kehoe; Gary E. Thompson
  • Law Firms: Hunton & Williams LLP - Richmond Office ; Hunton & Williams LLP - Atlanta Office ; Hunton & Williams LLP - Richmond Office
  • On December 9, 2011, in In re Compellent Technologies, Inc. S’holder Litig., the Delaware Court of Chancery granted a $2.4 million fee award to plaintiffs’ attorneys who negotiated a settlement arising out of stockholder litigation challenging a merger. The settlement called for several amendments to the merger agreement to relax its deal protection provisions. The settlement also required the target corporation to rescind a rights plan that was adopted specifically in connection with the announcement of the merger. The court’s decision is likely to encourage additional challenges to no-shop provisions, matching rights, and similar provisions.