You are here: / / NONMONETARY SETTLEMENT OF A SHAREHOLDERS’ CLASS ACTION SUIT APPROVED,...

NONMONETARY SETTLEMENT OF A SHAREHOLDERS’ CLASS ACTION SUIT APPROVED, NEW ANALYTICAL CRITERIA ANNOUNCED.

The First Department, in a full-fledged opinion by Justice Kahn, with a concurring opinion, reversing Supreme Court, determined a nonmonetary settlement of a shareholders’ class action suit should have been approved. The matter was sent back to determine appropriate attorneys’ fees. The opinion is too comprehensive to fairly summarize here. The court revisited the factors to be considered in analyzing nonmonetary settlements, adding two new factors to those announced in Woodrow v Colt Industries in 1990. This action involved the propriety of the purchase of Verizon Wireless by Verizon Communications:

The rise of nonmonetary class action settlements began in the 1980s and continued into the 1990s, when complaints of corporate misconduct in the context of mergers and acquisitions prompted calls for corporate governance reforms. Often, the perceived need for reform led to the commencement of litigation as a means to address the misfeasance, which would result in settlements with provisions for corporate governance reform or other forms of equitable relief, such as additional disclosures to shareholders in proxy statements, and would be accompanied by an award of reasonable attorneys’ fees to shareholders’ counsel. * * *

In the ensuing decades, however, the use of nonmonetary settlements became increasingly disfavored. Complaints arose that the remedies of “disclosure-only” and other forms of non-monetary settlements themselves proved problematic because they provided minimal benefits either to shareholders or to their corporations. Both courts and commentators came to view the shareholder class action in this context as a “merger tax” and as a cottage industry for the plaintiffs’ class action bar, used to force settlements of nonmeritorious suits and to generate exorbitant attorneys’ fees, causing waste and abuse to the corporation and its shareholders. * * *

… [W]e now refine our Colt standard of review to add to the five established factors to be used by courts to ensure appropriate evaluation of proposed nonmonetary settlements of class action suits these two additional criteria: whether the proposed settlement is in the best interests of the putative settlement class as a whole, and whether the settlement is in the best interest of the corporation. Gordon v Verizon Communications, Inc., 2017 NY Slip Op 00742, 1st Dept 2-2-17

 

CORPORATION LAW (NONMONETARY SETTLEMENT OF A SHAREHOLDERS’ CLASS ACTION SUIT APPROVED, NEW ANALYTICAL CRITERIA ANNOUNCED)/SHAREHOLDERS’ CLASS ACTIONS (NONMONETARY SETTLEMENT OF A SHAREHOLDERS’ CLASS ACTION SUIT APPROVED, NEW ANALYTICAL CRITERIA ANNOUNCED)/CLASS ACTIONS (SHAREHOLDERS, NONMONETARY SETTLEMENT OF A SHAREHOLDERS’ CLASS ACTION SUIT APPROVED, NEW ANALYTICAL CRITERIA ANNOUNCED)/NONMONETARY SETTLEMENTS (SHAREHOLDERS’ CLASS ACTIONS, NONMONETARY SETTLEMENT OF A SHAREHOLDERS’ CLASS ACTION SUIT APPROVED, NEW ANALYTICAL CRITERIA ANNOUNCED)

You might also like
QUESTIONS OF FACT ABOUT ASSUMPTION OF THE RISK AND THE LOCATION OF AN UNPADDED SNOW MACHINE POLE PRECLUDED SUMMARY JUDGMENT IN THIS SKIING ACCIDENT CASE (FIRST DEPT).
THE DEFENDANT DID NOT SUBMIT ACTUAL MEASUREMENTS OF THE DEFECT WHICH CAUSED PLAINTIFF’S FALL; THE PHOTOGRAPHS AND THE TESTIMONY THAT THE DEFECT WAS ONE-INCH IN HEIGHT WAS NOT ENOUGH TO PROVE THE DEFECT WAS TRIVIAL AS A MATTER OF LAW; DEFENDANT’S MOTION FOR SUMMARY JUDGMENT SHOULD NOT HAVE GRANTED (FIRST DEPT). ​
DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT IN TRIP AND FALL CASE PROPERLY GRANTED.
BECAUSE PLAINTIFF WAS FOLLOWING THE DIRECTIONS OF HIS FOREMAN WHEN INJURED BY AN IMPROPERLY HOISTED LOAD, HE COULD NOT BE THE SOLE PROXIMATE CAUSE OF HIS INJURIES (FIRST DEPT).
FATHER DEPRIVED OF HIS STATUTORY RIGHT TO ASSIGNED COUNSEL, REVERSAL REQUIRED.
VASTLY DIFFERENT ACCOUNTS OF THE INCIDENT PRECLUDED SUMMARY JUDGMENT, SUPREME COURT REVERSED, EXTENSIVE DISSENT (FIRST DEPT).
Plaintiff Should Have Been Allowed to Voluntarily Discontinue Lawsuit
ALTHOUGH MOST OF THE CAUSES OF ACTION STEMMING FROM THE PURCHASE OF RESIDENTIAL MORTGAGE-BACKED SECURITIES WERE TIME-BARRED, A LIMITED BACKSTOP GUARANTY CAUSE OF ACTION AND A FAILURE TO NOTIFY CAUSE OF ACTION WERE REINSTATED.

Categories

Sign Up for the Mailing List to Be Notified When the Site Is Updated.

  • This field is for validation purposes and should be left unchanged.

Copyright © 2025 New York Appellate Digest, Inc.
Site by CurlyHost | Privacy Policy

HEATING AGREEMENT WAS A COVENANT WHICH RUNS WITH THE LAND, ORAL WAIVER MAY BE... EXCLUSION FOR INJURY DURING UNLOADING AN INSURED TRAILER APPLIED, EVEN THOUGH...