Investors, Companies to Fight Over Who Pays Litigation Fees
Pensions & Investments
January 12, 2015
Christine S. Azar remarks on court ruling allowing fee-shifting, "loser pays" bylaws
A recent Delaware Supreme Court decision in ATP Tour Inc. et al. vs. Deutscher Tennis Bund upheld the corporation's right to unilaterally amend its bylaws to make unsuccessful shareholder litigants personally liable for legal expenses, even if they prevailed on some, but not all, of the issues.
"That gives us great concern because it doesn't prevent frivolous litigation, it prevents litigation, period. When you have to win with a capital W, it's just too big a risk," said Labaton Sucharow partner, Christine S. Azar.