Wednesday, December 14, 2011
Chancellor Strine approved the J Crew settlement today over the objections of one of the co-lead plaintiffs, Martin Vogel.
The only individual acting as a lead plaintiff, Martin Vogel, was also removed because he opposed the settlement. ...
Mark Vogel, a New Jersey lawyer and investment adviser who represented his father Martin Vogel at Wednesday's hearing, said the class action process was driven by attorneys who "confined me to a silo" and "steamrolled" him.
"Lead counsel's game is to intimidate the one individual who managed to find his way into their cozy club," Mark Vogel said.
Vogel laid out his complaints about plaintiff counsel in his objection (here). Notwithstanding those complaints, Vogel was removed as a co-lead plaintiff and the case was permitted to settle. The plaintiff's counsel received a $6.5 million fee award and the board got another chastizing.
Strine also criticized the behavior of J Crew's directors and chief executive for allowing TPG Capital, one of the buyers, to get a head start in the sale process, which he said may have eliminated potential rivals.
"It's icky stuff," said Strine. "This was not good corporate governance."
Not good, indeed.