October 14, 2025
Delaware Chancery M&A Lawsuit Settlements On the Rise
Cornerstone Research just released a report on M&A litigation settlements in the Court of Chancery. It found that the number and dollar amount of settlements in M&A-related lawsuits filed in Delaware increased substantially from 2019 to 2024. Here’s more from the press release:
In 2024, 21 such settlements totaled $618.3 million in the aggregate, a significant increase from five settlements totaling $110.1 million in the aggregate in 2019.
The report also observed that of the 10 settlements within the study period that equaled or exceeded $100 million, four have occurred since 2022.
The most common settlement amounts during 2022–2024 ranged between $20 million and $50 million, while the most common settlement amounts in prior periods were below $10 million.
Large settlements contributed, but it says there has also been an increase in the number of smaller settlements.
In 2024, 21 such settlements totaled $618.3 million in the aggregate, a significant increase from five settlements totaling $110.1 million in the aggregate in 2019. The report also observed that of the 10 settlements within the study period that equaled or exceeded $100 million, four have occurred since 2022. The most common settlement amounts during 2022–2024 ranged between $20 million and $50 million, while the most common settlement amounts in prior periods were below $10 million.
A “typical” settlement in the study was one involving “a dispersed group of stockholders alleging unfair consideration paid for their shares due to alleged actions by a controller.”
In 78% of settlements, the plaintiffs were stockholders of the target company in the M&A transaction.
74% of settlements included allegations involving actions by the controlling stockholder.
There’s a lot more data in the full report, and the D&O Diary blog has a longer summary.
– Meredith Ervine
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