New Jersey Court Rejects Disclosure-Only Settlement

Margrave Law, together with Webber McGill LLC, successfully represented a stockholder objector in a challenge to a disclosure only M&A settlement before the Superior Court of the State of New Jersey for Union County. On June 6, 2016, the New Jersey court held that none of the supplemental disclosures offered as consideration to stockholders were material and declined to approve the settlement. Several class plaintiffs, represented by a dozen law firms, had sought a total of $525,000 in attorneys’ fees and expenses for their efforts in the case.

The decision in Vergiev v. Aguero, et al., No. L-2776-15 represents one of the first instances of a court outside of Delaware applying the reasoning of the Delaware Court of Chancery’s opinion in In re Trulia, Inc. Stockholder Litigation, 129 A.3d 884 (Del. Ch. 2016).

Read the Final Order and Judgment and Statement of Reasons.