DealLawyers.com Blog

June 30, 2016

Dell, T. Rowe Price Settle Buyout Lawsuit for $25 Million

Here’s the intro for this WSJ article about this court order approving a settlement issued yesterday (also see this Gary Lutin report with more info):

T. Rowe Price Group Inc. shareholders are getting some of their money back after a proxy voting blunder cost the mutual-fund company nearly $200 million. Dell Inc. will pay T. Rowe about $25 million to settle a long-running lawsuit over the technology giant’s buyout, according to people familiar with the matter.

That is a fraction of the almost $200 million T. Rowe would have received had it not accidentally voted in favor of the 2013 deal. A Delaware judge ruled last month that founder Michael Dell and his private-equity backers underpaid for the company and ordered them to repay dissenting investors — a windfall that T. Rowe was ineligible for. In exchange, T. Rowe has agreed not to appeal a series of unfavorable court rulings that disqualified it from a larger payday, the people said.