Delaware judges shrink fees to plaintiffs lawyers

Chancery Court condemns suits largely benefitting plaintiffs bar

M&A experts agree that for nearly every deal in the works, a company can expect that its shareholders will sue, alleging unfair agreements and board misconduct. As these challenges to corporate transactions continue to flood the Delaware courts, judges have become increasingly critical of plaintiffs firms that file meritless or weak lawsuits on behalf of shareholders.

The goal among many plaintiffs firms is to settle quickly and score big legal fees, which can be as large as $500,000. However, the Wall Street Journal reports that Delaware judges are significantly slashing fees down to about $75,000.

Ashley Post

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