Articles Posted in Class Action

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This case arose when Del Monte Foods Company announced that it had agreed to be acquired by a consortium of Kohlberg Kravis Roberts & Co. L.P., Vestar Capital Partners, and Centerview Partners (collectively, Sponsors). A number of familiar entrepreneurial plaintiffs' firms filed putative class actions challenging the merger. Plaintiffs subsequently sought an interim award of attorneys' fees and expenses for causing defendants to issue supplemental disclosures and obtaining a preliminary injunction. The court held that the application for an interim fee award was granted with respect to benefits conferred by the Proxy Supplement. For those benefits, Lead Counsel was awarded fees and expenses of $2.75 million. Therefore, the court held that the application was otherwise denied without prejudice and could be renewed at a later time. View "In re Del Monte Foods Co. Shareholders Litigation" on Justia Law

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Plaintiff, a significant stockholder in a holding company managed by the individual defendants, alleged, both on behalf of a class and derivatively, breaches of fiduciary duty regarding defendants' adoption of a stock buyback plan, their adoption of an options plan, issuance of the options to themselves, and the decision by the company to vote in favor of a transaction involving the sale of a subsidiary's interest in a third entity. At issue was whether the court should grant defendants' motion to dismiss pursuant to Court of Chancery Rule 12(b)(6) for failure to state a claim. The court denied defendants' motion to dismiss Count II only with regard to the claim that defendants' vote of Winmill & Co. Incorporated's ("Winmill") interest in Bexil Corporation in favor of the York Insurance Services Group, Inc. sale was self-interested and unfair to Winmill. The court otherwise granted defendants' motion to dismiss. View "The Ravenswood Investment Co., L.P. v. Winmill, et al." on Justia Law