Shareholders may bring corporate mergers and acquisitions class action lawsuits when the corporations they are invested in are targeted for unfair acquisitions, leveraged buyouts, privatization, and similar transactions. The unfair aspects of the proposed transaction may be unfair in substance or procedures. The class action will seek to remedy the unfair part of the transaction while ensuring that it is in shareholders’ best interests. This type of legal action can protect shareholders’ rights to access relevant information before they vote on a transaction, as well as remove obstacles to a fair sale and improve the expected benefits of the sale.
If the court determines that a larger group of consumers shares the same claims, it will allow the case to proceed as a class action on behalf of all similarly injured consumers. All the small, individual claims are bundled into a larger case that allows individuals who may not normally bring a case on their own or who may not have the financial resources to bring a case to recover for the company’s wrongdoing.
As a plaintiff in any type of class action, you will represent yourself and other shareholders who were harmed by the same wrongdoing. As the plaintiff, you must act in the best interests of this group or “class.” It is your job to stay informed, to work with your lawyers to design and implement strategies for effective litigation, and to make decisions as needed.
A corporate merger and acquisition class action typically takes two years to litigate. Because these cases are based on transactions that have already been agreed to by the board of directors with deadlines for completion, they usually proceed at a quicker pace than other shareholder actions. However, each case is unique and some cases can be resolved in less time, while others may take longer. Certain factors that can influence the length of a securities fraud class action include challenges to jurisdiction and venue, discovery disputes, judicial changes, and appeals, to name a few.
No. Representative plaintiffs in actions brought by Robbins LLP are not responsible for paying attorneys’ fees or expenses. All costs and expenses of the litigation are advanced by Robbins LLP. We only recover our fees and costs – paid for by defendants – if we are successful in obtaining a substantial benefit for the corporation.
