In re Nine Systems Corp. S’holders Litig.

Plaintiffs - shareholders in their individual capacities - filed a complaint alleging that Defendants breached the duty of loyalty by conducting a self-interested recapitalization. Monetary damages were not available to Plaintiffs, but the Court of Chancery granted Plaintiffs leave to petition the Court for an award of attorneys’ fees and expenses, noting its inherent equitable power to shift attorneys’ fees and its statutory authority to shift costs. The Court concluded that Plaintiffs were entitled to an award of $2 million in attorneys’ fees and expenses, as such an award promotes meritorious litigation to address harm from disloyal acts and comports with equitable principles. View "In re Nine Systems Corp. S’holders Litig." on Justia Law