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On May 3, 2021, Anthem, Inc. secured its win over Cigna Corp. s pursuit of a $1.85 billion breakup fee following the collapse of their proposed $54 billion merger. In a brief order, Justice Karen L. Valihura, writing for the full five-member Delaware Supreme Court, rejected Cigna s appeal and affirmed on the basis of and for the reasons assigned by Vice Chancellor J. Travis Laster in his sprawling 306-page decision issued in August 2020.
1 The deal thus ultimately ends in a draw, with neither side receiving any compensation or damages after years of litigation. However, the decision now clears the way for the pending shareholder suits against Anthem and Cigna to proceed.
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Del. Justices Unsure $12M Deal Mootness Fee Is Off-Base
Law360 (February 10, 2021, 7:27 PM EST) A Delaware Supreme Court justice questioned calls Wednesday for the reversal of a supposedly unsupported, $12 million Chancery Court mootness fee to stockholder attorneys whose successful challenge to a Versum Materials Inc. merger poison pill begat a deal that was $1.2 billion higher.
During arguments on an appeal filed by Versum and its directors, Justice Karen L. Valihura told the company s counsel William Lafferty of Morris Nichols Arsht & Tunnell LLP that Vice Chancellor J. Travis Laster acknowledged concerns about both the size of the fee amounting to about $10,700 per hour for a mooted claim and the semiconductor.
The Delaware Supreme Court has refused to undo a 2013 trial court ruling tossing a lawsuit claiming Dole Food Co. Inc. and other companies exposed banana plantation workers in Latin America to the toxic pesticide DBCP, saying the lower court hadn't abused its discretion.