Shareholders challenged more than 94 percent of U.S. merger and acquisition (M&A) deals valued over $100 million in 2013, according to Shareholder Litigation Involving Mergers and Acquisitions, the first in a series of two M&A reports to be issued by Cornerstone Research. This activity continues a four-year trend that began in 2010, with shareholders challenging 90 percent of deals in that year and 93 percent in 2011 and 2012. Deals worth $100 million or more attracted an average of five lawsuits, with the Dell Inc. buyout spawning 26 filings – the most of any M&A deal in 2013.
“As in prior years, litigation for the majority of 2013 M&A deals was resolved before the deal was closed,” noted Adel Turki, a senior vice president of Cornerstone Research and head of the firm’s finance practice. “None of the lawsuits in our data went to trial, and all judgments, including summary judgments or judgments on the pleadings, were granted to the defendants.”
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