Shareholder litigation involving mergers and acquisitions continued its upward trend in 2013, with 94% of deals valued over $100 million during the year challenged by shareholders.
The figure is up from 93% of deals challenged in 2012, and a dramatic increase from 44% in 2007, according to a Cornerstone Research analysis. The study says 2013 marks the fourth consecutive year in which shareholders challenged over 90% of M&A deals valued over $100 million
For the study, Cornerstone Research tracked lawsuits—usually in the form of a class action—filed by shareholders of public companies where plaintiff attorneys “typically allege that the target's board of directors violated its fiduciary duties by conducting a flawed sales process that failed to maximize shareholder value.”
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