Recent Decisions Tighten Standards For Merger Litigation

Law360, New York (February 2, 2015, 1:29 PM EST) -- While some were enjoying their holiday breaks, late in 2014, three decisions were issued by courts that frequently rule on shareholder litigation. The Delaware Supreme Court reinterpreted the Revlon standard to provide greater flexibility to the board in mergers or change-of-control transactions. Two justices of the Commercial Division of New York's Supreme Court (its trial bench) rejected "disclosure" only settlements in cases challenging mergers or other corporate transactions requiring shareholder approval. Together, the decisions provide higher hurdles for plaintiffs....

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