December 9, 2014

Two Recent Massive Merger Objection Lawsuit Settlements Include Significant D&O Insurer Contributions

Here’s an excerpt from this blog by Kevin LaCroix of the “D&O Diary Blog”:

One of the great litigation curses in recent times in the corporate litigation arena has been the rise of the merger objection litigation. These kinds of lawsuits, which these days arise in connection with almost every M&A transaction, often are settled for nothing more than an agreement to make additional disclosures and to pay the plaintiffs’ attorneys fees. However, from time to time, there are merger objection lawsuits that settle on more substantial terms.

Within the past few days, two merger objection settlements – one involving Activision Blizzard, Inc. and the other involving Freeport-McMoRan, Inc. — have been announced involving massive cash payments, much of it reportedly to be paid by D&O insurers. The Activision settlement may represent the largest cash settlement payment ever in a shareholder derivative lawsuit.