Cases in Point
- In re Freeport-McMoRan Copper & Gold Inc. Derivative Litigation
On behalf of shareholders, Labaton Sucharow secured the second largest derivative settlement in the Delaware Court of Chancery. We first achieved a $137.5 million settlement with the board of directors of Freeport. The settlement terms contain an unprecedented provision, allowing direct payment to stockholders by means of a special dividend. Along with the cash settlement, Labaton Sucharow also negotiated certain corporate governance reforms to be implemented and maintained by Freeport for at least three years. Months later, Labaton Sucharow obtained another $16.25 million with Freeport's financial advisor, Credit Suisse.
- In re News Corporation Shareholder Derivative Litigation
Labaton Sucharow, on behalf of Massachusetts Laborers' Pension & Annuity Funds, filed a derivative complaint in the Delaware Court of Chancery against the Board of Directors of News Corporation alleging breaches of its fiduciary duties in connection with the News of the World phone hacking scandal and its related fall-out and for disregarding its fiduciary duties by allowing the Company's founder, CEO, Chairman and controlling shareholder, Rupert Murdoch, to engage in nepotism and use News Corp. as his own personal fiefdom. Plaintiffs allege that at all relevant times the Board (which includes Murdoch's two sons, James Murdoch and Lachlan Murdoch) was conflicted and beholden to Murdoch and should be liable for its refusal to investigate and to stop known misconduct at the Company.
- In re Barnes & Noble Stockholders Derivative Litigation
The parties entered into a formal Settlement Agreement, which includes the following terms: (i) a $22.75 million reduction in the purchase price for College Books; and (ii) a $6.25 million reduction in the remaining interest payable on the Junior Seller Note for College Books through its maturity date. Together, this represents a $29 million benefit to B&N shareholders.
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