DealLawyers.com Blog

Last week, the D&O Diary Blog featured data from a Cornerstone Research report on settlements of M&A lawsuits filed in the Delaware Chancery Court. As the announcement notes, the report covers data from settlements from 2012 to 2025. Cornerstone found that settlements rose in 2025, while dollar values fell.

The number of settlements in litigation related to mergers and acquisitions (M&A) in the Delaware Chancery Court reached 25 last year, its highest level since 2012. However, aggregate settlement amounts declined to $326.6 million, down significantly from the 2023 inflation-adjusted peak of $734.8 million, according to a new Cornerstone Research report released today.

In addition to the dip in aggregate settlement amounts, the median settlement in 2025 fell to $10 million, the lowest recorded over the period analyzed. The median settlement amount as a percentage of transaction value also declined, continuing a multi-year downward trend.

All 2025 settlement amounts were below $50 million, and 80% were below $20 million. In comparison, only 42% of settlements between 2020 and 2024 were below $20 million.

There was an overall drop in claimed damages and settlement values, but these results were at least somewhat driven by an increased number of SPAC lawsuits, “which tend to involve lower claimed damages.” Not surprisingly, claimed damages and settlement amounts significantly correlate, but cases with larger claims tend to settle for a smaller percentage of those claimed damages.

– Meredith Ervine