Last month, the Delaware Chancery Court drastically reduced – from $275,000 to $50,000 – a mootness fee award requested by plaintiffs’ counsel in a lawsuit challenging the merger between PayPal and Xoom Corporation, finding the supplemental disclosures that flowed from the lawsuit provided only minor benefits to stockholders. In re Xoom Corp. Stockholder Litigation. The steep fee reduction reinforces Trulia’s admonition earlier this year that the days of $250,000-$350,000 attorneys’ fee awards for meaningless additional disclosures are over, as Delaware judges will carefully scrutinize attorneys’ fee requests for litigation that yields disclosures of little or no value.
Defendants
Surviving Settlement Provisions in Joint Defense Agreements
By Stephen R. Chuk on
Anyone who watches Survivor or Game of Thrones knows that alliances are critical. And while they may be necessary to endure from one day to the next, alliances are inevitably broken.
Co-defendants in antitrust cases can draw lessons from these shows. Like alliances, joint defense agreements (“JDA” or “JDAs”) help facilitate defendants’ common interests. JDAs create efficiencies and cost savings by “present[ing] a pooling of resources, a healthy exchange of vital information, a united front against a common litigious foe, and the marshaling of legal talent and advice.” Lugosch v. Congel. Under the right circumstances, JDAs also serve the vital purpose of allowing defendants to realize those benefits without waiving privilege. Id.