Monday, September 24, 2012
The Delaware Supreme Court denied Grupo Mexico's motion for reargument following its ruling to uphold the Chancery Court's opinion - including a $300 million legal fee award. Now Grupo Mexico responds. Presumably they'll be sending a check soon.
"This ruling sets a dangerous precedent, if not a new high for court sanctioned legal fees in a derivative action. Excluding the defendants shares, it represents an award of 80 percent of the benefit obtained for their clients. On an hourly basis, it comes to$35,000 per hour. This is an unwarranted transfer of wealth from the shareholders of a publicly traded company to plaintiffs' attorneys. It turns the well established legal principle that 'those who profited from the litigation should share its costs' on its head, and sends a clear if disturbing message to plaintiffs' attorneys they can be made wealthy by an award out of proportion to the benefit they actually win for their clients." – Grupo Mexico General Counsel Mauricio Ibanez-bjmq