A report recently released by Cornerstone Research found that 94 percent of all mergers struck in 2013 faced lawsuits, a troubling trend that some report say costs shareholders millions of dollars.
According to reports, lawsuits were field against 90 percent of merger deals worth at least $100 million. It’s the fourth-straight year this has happened – up from just 44 percent of mergers that faced lawsuits in 2007.
According to Forbes, the trend suggests not that mergers are getting sloppier, but that lawyers are failing to research the transactions ahead of filing litigation, relying on a lawsuit to delay a transaction in efforts to obtain settlements or lawyers’ fees.
According to the Cornerstone study, the average number of lawsuits a merger faced was five. Michael Dell, the founder of Dell, faced 26 lawsuits in his acquisition of the company.
Full Content: Forbes
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Google and South Carolina Clash Over State Records Demand
May 8, 2024 by
CPI
Telefonica Germany Teams Up with Amazon Web Services to Migrate 5G Customers
May 8, 2024 by
CPI
Federal Judge Grants $7.4 Million Settlement in Pork Price-Fixing Case
May 8, 2024 by
CPI
Wilson Sonsini Bolsters Antitrust and Competition Practice with Key Partner Returns
May 8, 2024 by
CPI
EU to Scrutinize Telecom Italia’s Network Sale to KKR
May 8, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI