Judges on the Delaware Court of Chancery are putting plaintiffs’ attorney fee requests under the microscope in cases challenging corporate deals — and slashing requested fees when they find that shareholders reaped minimal benefits from the lawsuits.

In 10 recent rulings, Chancery judges analyzed the work and results of lawyers on behalf of shareholder plaintiffs before handing out a fraction of the requested legal fees. Vice Chancellor J. Travis Laster, in one notable example, awarded plaintiffs’ lawyers $75,000 instead of their requested $750,000. Ruling in April in In re Sauer-Danfoss Inc. Shareholders Litigation, Laster found the lawyers “never engaged in meaningful litigation activity.”

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]