'European Model': Huge Settlement, But No Suit

A settlement of more than $350 million with aggrieved shareholders announced this week by Royal Dutch Shell PLC provides a “European model” for a kinder, gentler approach to such situations than traditional U.S. securities litigation, according to lawyers for both sides.

The parties – all European investors who bought their shares outside the U.S. – agreed to a settlement without a foreign lawsuit ever being filed, explains the ABA Journal eReport. However, the parties have petitioned a Dutch court to approve the settlement contract, as provided for under a 2005 law that has never before been applied to a securities dispute. (The relevant statutory provisions are: Wet Collectieve Afwikkeling Massaschade, Articles 907 and 910, and Articles 1013 and 1018 of the Civil Code of the Netherlands.)

“As far as we know, it’s the first class-wide settlement between European investors and a European company over European securities claims—and on its face, it’s one of the absolute largest recoveries ever in Europe,” says Allan Ripp. He is a spokesman for Grant & Eisenhofer, a Wilmington, Del., law firm representing the foreign investors.

“There’s a whole different model now,” says Shell lawyer Ralph C. Ferrara of LeBoeuf, Lamb, Greene & MacRae’s Washington, D.C., office “The European model is, if you’ve got claims, sit down and talk.”

For details, see the ABA Journal eReport story, and an earlier blog post.

Prof Confronts Death Penalty Outside Classroom

Lawyers Argue Legality of ‘Suicide by Court’

We welcome your comments, but please adhere to our comment policy. Flag comment for moderator.

Commenting is not available in this channel entry.