In the nearly three years since the Delaware Court of Chancery first signaled its hostility to the proliferation of so-called disclosure-only merger lawsuits (culminating in the landmark In re Trulia, Inc. Stockholder Litigation decision), the sector has undergone considerable turmoil. (See my previous blog post.)
In 2015, the first year impacted by the Delaware court’s change of heart, the percentage of M&A deals valued at more than $100 million that attracted shareholder lawsuits dropped to 84 percent from the incredible 90-94 percent level of the 2010-2014 period. The rate fell further to 71 percent in 2016, then recovered slightly to 73 percent in 2017 – still high by pre-2009 standards.
‘Enforcement 40’ for 2020
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