Trulia pushes M&A litigation into federal courts

Author: John Crabb | Published: 8 Mar 2017

Increasing numbers of M&A litigation cases are now being heard in federal and other state courts following the implementation of Delaware’s In re Trulia in 2015. But overall M&A litigation figures remain largely unchanged.

The measures were brought by the court system to lower the high proportion of M&A cases that were being litigated in the state by limiting disclosure-only settlements. This made success more difficult for litigation in instances that were not deemed entirely necessary to shareholders, and whose only end was to earn high fees for plaintiffs.

Trulia has made the court less receptive, and far less attractive, to plaintiffs and their claims which has, in turn, reduced the number of transactions litigated in Delaware.  The number of deals attracting a lawsuit in Delaware fell from 61% in 2015 to 32% in 2016. The overall number of M&A transactions to be...