M & A Law Prof Blog

Editor: Brian JM Quinn
Boston College Law School

Monday, September 24, 2012

Grupo Mexico fires back after denial of reargument

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



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