On Monday, the Delaware Supreme Court affirmed a $2 billion judgment by Delaware Chancellor Strine in the Grupo Mexico/Southern Peru shareholder derivative litigation. The Supreme Court also affirmed Chancellor Strine’s attorneys’ fees award of more than $300 million. This ruling has implications for future attorneys’ fee awards in Delaware derivative actions.
The litigation arose from Southern Copper’s 2005 acquisition of Minera Mexico. The plaintiff alleged that the acquirer’s controlling shareholder, Grupo Mexico, and directors of the acquirer breached their fiduciary duty of loyalty by causing the company to purchase Minera (which also was controlled by Grupo Mexico) for more than it was worth.
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