Mergers, acquisitions, and other business combinations involving large
companies very frequently give rise to litigation. The archetypal “deal
litigation” case is the action, filed on behalf of a class of the acquired
company’s stockholders, alleging that the directors of the company breached
their fiduciary duties in connection with the transaction. The alleged
breaches run the gamut from a failure to seek alternatives, to an attempt by
the directors to entrench themselves, to self-dealing. Although not all of
these cases are without merit, it is a fact of modern life that many of these
types of actions are filed quickly after the announcement of a transaction,
often relying on the same allegations that have been made in dozens or even
thousands of previous complaints.
Mergers and Acquisitions Deal Litigation under Delaware Corporation Law
examines the process by which these (and other actions that frequently arise
from mergers and acquisitions) are litigated. Other common types of deal
litigation include litigation between two parties to a transaction concerning
provisions of their agreement, summary actions to determine the proper
membership of a corporation’s board of directors, and complaints by
unsuccessful bidders.
Mergers and Acquisitions Deal Litigation under Delaware Corporation Law
focuses primarily on litigation in the Delaware Court of Chancery. Not only
does that court hear many of the most important deal litigation cases, but it
historically has been at the forefront of shaping the law of directors’
fiduciary duties generally. This book also addresses case law from courts in
other jurisdictions in cases governed by Delaware law. In addition, we discuss
the companion litigation that is sometimes filed in federal courts, which have
exclusive jurisdiction over, among other things, claims based on the
Securities Exchange Act of 1934.
Mergers and Acquisitions Deal Litigation under Delaware Corporation Law
is your one-stop resource for all the most up-to-date information available,
providing you with:
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Expert insight and experienced detail of all the practical issues that arise
in the litigation of M&A matters under the Delaware laws, including pretrial
motions, discovery, trial practice, and appeals
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Detailed coverage of the all-important electronic discovery strategies central
to compliance and litigation
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Invaluable and insightful practical guidance for the securities and M&A
practitioners, offering quick access to information that is relevant to all
stages of pre-trial, trial, and post-trial practice, including Guidelines to
Help Lawyers Practicing in the Court of Chancery, and Court of Chancery
Guidelines for Preservation of Electronically Stored Information.
Chapter 1. THRESHOLD CONSIDERATIONS
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§ 1.01 Initial Filings
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§ 1.02 Filing Considerations in the Delaware Court of Chancery
Chapter 2. INITIAL MOTION PRACTICE
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§ 2.01 Initial Motion Practice
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§ 2.02 Types of Initial Motions
Chapter 3. MOTIONS TO DISMISS
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§ 3.01 Personal Jurisdiction
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§ 3.02 Standing
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§ 3.03 Derivative Claims
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§ 3.04 Statute of Limitations and Laches
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§ 3.05 Dispositive Motions Based on Conclusory Allegations
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§ 3.06 Director Exculpation
Chapter 4. CLAIMS BY STOCKHOLDERS
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§ 4.01 Fiduciary Duties and Standards of Review
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§ 4.02 Claims Commonly Brought in Deal Litigation
Chapter 5. DISCLOSURE CLAIMS
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§ 5.01 Claims Alleging False and Misleading Disclosures or Omissions
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§ 5.02 Commonly Alleged Disclosure Deficiencies
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§ 5.03 Information That May Generally Be Omitted From Disclosures
Chapter 6. CLAIMS BY ACQUIRORS, SELLERS, AND UNSUCCESSFUL BIDDERS
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§ 6.01 Frequently Litigated Merger Agreement Provisions
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§ 6.02 Is There a Contract?
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§ 6.03 Claims by Unsuccessful Bidders
Chapter 7. STATUTORY PROCEEDINGS: INSPECTION, ADVANCEMENT, ELECTIONS, AND
APPRAISAL
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§ 7.01 Proceedings to Enforce Inspection Rights
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§ 7.02 Summary Proceedings for Advancement of Litigation Expenses
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§ 7.03 Proceedings to Determine Validity of Elections and Related Issues --
Section 225 Actions
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§ 7.04 Statutory Appraisal Proceedings
Chapter 8. DISCOVERY
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§ 8.01 General Discovery Considerations
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§ 8.02 Discoverability of Electronic Information
Chapter 9. PRIVILEGE AND CONFIDENTIALITY
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§ 9.01 Confidentiality Stipulations and Orders
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§ 9.02 Privilege Issues
Chapter 10. ORAL ARGUMENT, EXPERTS, PRETRIAL MOTIONS, AND TRIAL PRACTICE
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§ 10.01 Oral Argument Practice
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§ 10.02 Expert Witnesses
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§ 10.03 Pretrial Motions
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§ 10.04 Trial Practice
Chapter 11. SETTLEMENT AND ATTORNEYS’ FEES
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§ 11.01 Settlement Process and Procedure
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§ 11.02 Attorneys’ Fees and Related Issues
Chapter 12. APPEALS PRACTICE
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§ 12.01 Timing Considerations
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§ 12.02 Practice and Custom in the Delaware Supreme Court
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§ 12.03 Panel Configurations
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§ 12.04 Security for Appeals
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§ 12.05 Motion Practice in the Delaware Supreme Court
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§ 12.06 Motion to Affirm
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§ 12.07 Other Delaware Supreme Court Rules Special Provisions
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§ 12.08 Briefs
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§ 12.09 Argument
Chapter 13. PROCEDURAL CONSIDERATIONS FOR ACTIONS ARISING UNDER FEDERAL
SECURITIES LAWS
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§ 13.01 Overview
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§ 13.02 Jurisdiction
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§ 13.03 Preliminary Procedural Considerations Under the Private Securities
Litigation Reform Act (PSLRA)
Chapter 14. PRIVATE RIGHTS OF ACTION UNDER THE FEDERAL SECURITIES LAWS
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§ 14.01 Overview
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§ 14.02 Limitations on the Applicability of the Federal Securities Laws to
Claims Involving Mergers
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§ 14.03 Securities Act of 1933
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§ 14.04 Securities Exchange Act of 1934
APPENDIX 1. GUIDELINES TO HELP LAWYERS PRACTICING IN THE COURT OF CHANCERY
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Exhibit 1. Sample Scheduling Stipulation for Motion to Dismiss
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Exhibit 2. Sample Scheduling Stipulation for Cross-Motions on Summary Judgment
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Exhibit 3. Sample Scheduling Stipulation for Summary Proceeding
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Exhibit 4. Sample Scheduling Stipulation for a Motion for Preliminary
Injunction
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Exhibit 5. Sample Scheduling Stipulation for a Plenary Action
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Exhibit 6. Sample Expert Discovery Stipulation
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Exhibit 7. Sample One-Tier Confidentiality Stipulation With Exhibit A
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Exhibit 8. Sample Two-Tier Confidentiality Stipulation With Exhibit A
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Exhibit 9. Sample Settlement Scheduling Order
APPENDIX 2. COURT OF CHANCERY GUIDELINES FOR PRESERVATON OF ELECTRONICALLY
STORED INFORMATION
Table of Cases (Delaware Jurisdictions)
Table of Cases (Other Jurisdictions)
Table of Statutes
Index