Judge Nixes Settlement In Rural/Metro Buyout Suit

Law360, Wilmington (January 17, 2012, 7:10 PM EST) -- A Delaware judge on Tuesday rejected Rural/Metro Corp.’s proposed settlement of a shareholder class action challenging the $438 million private equity buyout of the company, questioning whether lead counsel for the class delved deeply enough before settling for additional disclosures on the deal.

In April, Rural/Metro shareholders alleged in Delaware Chancery Court that Warburg Pincus LLC’s $17.25 per-share offer undervalued the medical transport company and resulted from a flawed process. The suit, like many of its ilk, was soon settled for additional disclosures and fees for...
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