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In both deals, litigation was brought before the takeovers could be completed.
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Similar federal reform may be needed to tame the recent upswing in deal litigation.
It is clear that there is significantly more preclosing deal litigation activity happening outside of Delaware.
Deal litigation continues to be largely inevitable, but should not be allowed to wag the dog.
The Trulia opinion has a number of significant implications for deal litigation in the Delaware Court of Chancery.
As the above discussion demonstrates, deal litigation has continued to change and adapt to the post-Trulia world.
As these types of federal securities disclosure cases proliferate, certain plaintiffs have injected some creativity into the typical mix of deal litigation disclosure claims.
Another (perhaps unintended) consequence of Trulia is that many plaintiff stockholders have elected to pursue deal litigation involving Delaware companies under federal law, rather than Delaware law.
If properly handled, deal litigation should not be an impediment to a deal that has been structured through a well-conceived process with a proper record, and should not be allowed to wag the dog.
22, 2015); Edward B. Micheletti, Jenness E. Parker & Bonnie W. David, "Forward Momentum: Trulia Continues to Impact Resolution of Deal Litigation in Delaware and Beyond," Insights: The Delaware Edition (Nov. 17, 2016).
Confronted with a dramatic rise in deal litigation "beyond the realm of reason" in the early part of the 21st century, Delaware's legal community struck a grand bargain with its corporate citizens.
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