“Trulia,” “Akorn,” and the Roller Coaster of M&A Litigation

U.S. corporate law adopts a regulation-by-litigation model where the efficient balance between incentives and filters is essential for litigation to perform its function. In this model, over-litigation is not only a detrimental distortion but also a significant indication that the regulating mechanism is not efficiently working and that some corrective actions are required.

Given the dramatic increase in M&A litigation in recent years, culminating in 2014 with challenges to 95 percent of deals valued at more than $100 million,  a correction was to a certain extent predictable. It came from the Delaware Court of Chancery in 2016 with In re Read more