Skadden Discusses Trends in M&A Disclosure Litigation

Over the past two years, the deal litigation landscape has changed dramati­cally. In early 2016, the Delaware Court of Chancery announced a new rule for evaluating disclosure-based settlements in deal litigation — the “plainly material” standard — and expressed a preference for disclosure claims either to be litigated or mooted, rather than settled. In re Trulia, Inc. Stockholder Litigation, C.A. No. 10020-CB (Del. Ch. Jan. 22, 2016). Trulia created a ripple effect across deal litigation in Delaware and beyond, with some interesting, and perhaps unforeseen, results.1

Disclosure-based settlements before the Court of Chancery are all but extinct. Litigation … Read more