Delaware Court of Chancery to Award Disclosure-Based Mootness Fees Only When Plaintiff Shareholder Obtains Additional Disclosures That Are "Plainly Material".

The Delaware Court of Chancery recently ruled in Anderson v. Magellan Health, Inc that a plaintiff shareholder's counsel would be awarded $75,000 in fees and expenses instead of the requested $1,100,000. The court determined that the requested award was unreasonable given the corporate benefits achieved. The case involved a shareholder's lawsuit to stop a merger, which was resolved when the defendant agreed to issue supplemental disclosures. The court clarified that going forward, mootness fees will only be awarded when the supplemental disclosures are "plainly material" or required by law. [Extracted from the article]