In an historic class action victory, Labaton Sucharow announced today it has reached an agreement for a $1 billion cash settlement on behalf of former holders of Dell Technologies Inc. Class V tracking stock. The agreement comes as the shareholders’ lawsuit – In re: Dell Technologies Inc. Class V Stockholders Litigation – was scheduled to go to trial next month in the Delaware Court of Chancery. This is the largest recovery prior to judgment ever achieved in a fiduciary duty action in the Delaware Court of Chancery. This $1 billion recovery is nearly four times the next-largest comparable recovery in Delaware.
The settlement, if approved by the court, will end the dispute arising from a $23.9 billion conversion of Class V stock in a controversial 2018 deal. In that transaction, Dell's controlling investors – including Michael Dell and the private equity firm Silver Lake – authorized the payment of cash and issuance of shares of new Class C common stock in exchange for Class V tracking shares. Dell Technologies’ Class V stock then ceased trading, and Dell’s Class C common stock (NYSE: DELL) began trading on the New York Stock Exchange. Labaton Sucharow subsequently filed suit in 2019 with co-counsel on behalf of Steamfitters Local 449 Pension Plan, challenging the transaction. In 2020, the Court of Chancery rejected a bid to dismiss the suit, paving the way for trial in 2022. Following discovery and the addition of Goldman Sachs as a defendant, Defendants settled the suit with only three weeks left before trial.
“This result is a testament to the hard work and dedication of the entire plaintiff counsel team. Suffice it to say, we’re pleased to have been able to achieve such a favorable outcome for the class, and look forward to submitting the settlement for Court approval in the coming weeks,” said Labaton Sucharow Partner Ned Weinberger, co-lead counsel for plaintiff and the class.
Labaton Sucharow served as co-lead counsel to the lead plaintiff, the Steamfitters Local 449 Pension Plan, and to the entire class, along with Quinn Emanuel Urquhart & Sullivan LLP, Friedman Oster & Tejtel, PLLC, Andrews & Springer, LLC, and Robbins Geller Rudman & Dowd LLP served as additional counsel.
About the Firm
Labaton Sucharow LLP is one of the world's leading complex litigation firms representing clients in securities, corporate governance and shareholder rights, consumer, and cybersecurity and data privacy litigation. Labaton Sucharow has been recognized for its excellence by the courts and peers, and it is consistently ranked in leading industry publications. Offices are located in New York, NY, Wilmington, DE, and Washington, D.C.