In his opinion rejecting a settlement in the lawsuit challenging a $3.5 billion merger of two real estate websites, Chancellor Andre G. Bouchard said the Delaware Court of Chancery’s assessment of disclosure-only settlements “must evolve,” warning that a tougher stance and new standards would apply moving forward.
The much-anticipated decision in In re Trulia Stockholder Litigation followed a spate of rulings in similar suits, where judges on the Chancery Court voiced growing distaste and frustration with the settlements, which offer shareholder plaintiffs additional information—and not money—in exchange for broad releases of claims against the defendants.
