Following the Delaware Chancery Court's ruling in In reTrulia, Inc., C.A. No. 10020-CB (Jan. 22, 2016), that effectively closed the door to 14(a) disclosure-based settlements in Delaware state
They're Baaaaack. Disclosure-Based 14(A) Claims Making a Ghostly Return
Following the Delaware Chancery Court's ruling in In re Trulia, Inc. that effectively closed the door to 14(a) disclosure-based settlements in Delaware state court, federal courts saw an influx of 14(a) "merger objection" litigation. More often than not, these suits are quickly dismissed following the company's issuance of a supplemental proxy with additional disclosures and the parties negotiate a mootness fee. The transaction closes and all parties move on — or so we thought. An emerging trend suggests that exposure to 14(a) claims may coming back from the near dead.

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