M&A lawsuits rapidly rising

Suits are up 847 percent since 2008

Is your company about to close a merger or acquisition? If so, the odds of having investigations pour in from plaintiffs firms with dollar signs in their eyes just increased exponentially.

Class action lawsuits accusing boards of directors of shirking their fiduciary duties when shopping for potential deals are now practically de rigueur, according to a Fox Business report published today. Plaintiffs firms increasingly are announcing investigations before the ink is dry on deal agreements, alleging boards agreed to subpar deals or failed to reach a “go-shop” period, which is intended to give companies 30 days to look for potentially better offers, the story says.

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