Professor Sean Griffith’s victory in a pro-bono case on disclosure settlements in merger lawsuits has been featured in a Law360 article.
A Florida appeals court on Friday adopted a stricter standard for review of so-called disclosure settlements that was originally crafted by the Delaware Court of Chancery in an attempt to curb litigation abuse through these deals, which have contributed to an explosion in shareholder litigation over mergers and acquisitions.
The Second District Court of Appeal’s ruling reversed and remanded a trial court’s approval of stockholder Richard Delman’s disclosure settlement with logistics provider Quality Distribution Inc. in a class action he filed over the company’s proposed $800 million acquisition by private equity firm Apax Partners LLC.
The appeals panel also reversed the trial court’s denial of a request for attorneys’ fees from Fordham University law professor Sean J. Griffith, a self-described activist investor and litigation abuse watchdog, who filed an objection to the settlement agreement and then appealed the trial court’s approval.
“We believe the court’s adoption of a new, heightened standard for trial court review of disclosure settlements in mergers and acquisitions class actions is a very positive development for cases in Florida and elsewhere on these important legal issues,” Griffith’s attorneys, Anthony Rickey of Margrave Law and Adam Schachter of Gelber Schachter & Greenberg PA, said in a statement.