Client Login Portal
    • addthis
    • link : Client Login
    • knowledge network
    • Practice Areas
    • Cases
    • About Us
    • News & Events
    • Our People
    • Knowledge Network
    • Contact Us
    Labaton Sucharow
    • addthis
    • link : Client Login
    • knowledge network
    • Practice Areas
    • Cases
    • About Us
    • News & Events
    • Our People
    • Knowledge Network
    • Contact Us
    • Practice Areas
    • Cases
    • About Us
    • News & Events
    • Our People
    • Contact Us
    • Knowledge Network
    • Client Login
    • Search
    • addthis
    • link : Client Login
    • knowledge network
    Labaton Sucharow
    • Ongoing Cases
    • Settled | Resolved Cases
    • Featured Cases
      • Securities
      • Derivative
      • Mergers & Acquisitions
      • REITs and Limited Partnerships
      • Consumer Products & Data Privacy

    In re Freeport-McMoRan Copper & Gold Inc. Derivative Litigation

    Settled: April 07, 2015

    Secures Second Largest Derivative Settlement in Court of Chancery History

    On April 7, 2015, the court approved a combined $153.75 million settlement with Freeport-McMoRan Copper & Gold Inc. (Freeport) and Credit Suisse, making it the second largest settlement in the Delaware Court of Chancery history. Labaton Sucharow, on behalf of co-lead plaintiff State-Boston Retirement System, initially secured a $137.5 million cash settlement in January 2015 with the Freeport's board of directors and contained an unprecedented provision, allowing direct payment to stockholders by means of a special dividend.

    The settlement also contained certain corporate governance reforms to be implemented and maintained by Freeport for at least three years. For more information, please read the settlement press release. Subsequently, the co-lead plaintiffs resolved potential claims against Credit Suisse, financial advisor to the Freeport special committee, for an additional $16.26 million.

    This derivative action arose from Freeport's acquisitions of Plains Exploration & Production Co. and McMoRan Exploration Co. in early 2013, totaling approximately $20 billion. Freeport stockholders alleged the transactions were tainted due to the overlapping boards and ownership of the three companies involved. Co-lead plaintiffs claimed that the board of Freeport approved the transactions in pursuit of its own interests and in breach of its fiduciary duty to stockholders.

    The case is In re Freeport-McMoRan Copper & Gold Inc. Derivative Litigation, No. 8145-VCN (Del. Ch.). The lead plaintiffs are State-Boston Retirement System; Dauphin County Employee Retirement Fund; Amalgamated Bank as Trustee for the LongView LargeCap 500 Index Fund, LongView LargeCap 500 Index VEBA Fund, LongView Quantitative LargeCap Fund, and LongView Quantitative LargeCap VEBA Fund; and City of Roseville Employees' Retirement System. Labaton Sucharow represents State-Boston Retirement System. The defendant is the board of directors of Freeport-McMoRan Copper & Gold Inc.

    case_study_callout_freeport

    Case Materials

    Final Order and Judgment

    Addendum to Stipulation and Agreement of Settlement, Compromise, and Release

    Supplemental Notice of Pendency of Derivative Action, Proposed Settlement of Derivative Action, Settlement Hearing and Right to Appear

    Notice of Pendency of Derivative Action, Proposed Settlement of Derivative Action, Settlement Hearing and Right to Appear

    Scheduling Order

    Stipulation and Agreement of Settlement

    Verified Second Amended and Consolidated Derivative Action Complaint

    Useful Links

    • Practice Areas
    • Cases
    • About Us
    • News & Events
    • Our People
    • Knowledge Center

    Our Locations

    footer-list-map_icon New York
    140 Broadway
    New York, NY 10005
    212-907-0700

    footer-list-map_icon Delaware
    222 Delaware Avenue, Suite 1510
    Wilmington, DE 19801
    302-573-2540

    Useful Links

    footer-list-map_icon Washington, D.C.
    1050 Connecticut Avenue, NW, Suite 500
    Washington, D.C. 20036
    202-772-1880

    Stay Connected

    • Facebook
    • Twitter
    • LinkedIn
    Labaton Sucharow
    • Attorney Advertising Disclaimer
    • Privacy Policy
    • California Privacy Policy and Notice of Collection of Personal Information
    • Transparency in Coverage Rule
    • labaton.com
    • Labaton Sucharow All Rights Reserved 2023

    Attorney Advertising Disclaimer

    The materials appearing on this website are provided for informational purposes only and do not constitute legal advice. You should not take action based upon this information without consulting legal counsel. This site is not intended to create an attorney-client relationship. The hiring of a lawyer is an important decision that should not be based solely upon any single source of information, including advertising on this website. You may ask us to send you further information about us, and we urge you to review other sources of information about us.