How Settling Stockholders Can Tilt the Playing Field Before Dissenting Investors Can Appear

When class-action or derivative plaintiffs and corporate defendants decide to settle stockholder litigation, both parties seek to secure court approval of their deal with a minimum of interference. In a recent settlement, the parties secured approval from the Delaware Court of Chancery of a scheduling order that, by design or scrivener’s error, gives any objector only three days to respond to arguments in favor of settlement.