Unhappy with Del. Derivative Case Settlement, Lead Plaintiffs Post $13.25M Bond to Keep Litigating
Posted Jul 11, 2012 10:25 pm CDT
In the latest development in an unusual shareholder derivative suit that seemingly had concluded with a ruling by a Delaware Chancery Court judge that a proposed $13.25 million settlement is fair, the lead plaintifffs, who say it is too small, have come up with the money to continue fighting the case themselves.
In a little-noticed provision in the May ruling in which Judge J. Travis Laster approved the settlement by Canadian Imperial Bank of Commerce he said those who objected could, if they wished, put up a bond for the amount of the settlement and continue the court battle, according to Reuters.
Now the objectors have announced in a court filing that they intend to do just that. They obtained the money to post a $13.25 million bond in part through funding from Burford Capital, a United Kingdom litigation finance company. Over 50 of the nearly 500 limited partners who have a stake in the litigation object, the article notes.
“I’ve heard judges saying ‘put up or shut up,’ but I don’t think anyone has put up before,” securities litigation adviser Adam Savett of TXT Capital tells the news agency.
Bloomberg: “Ex-CIBC Employees’ Investment Suit Tentatively Settled for $10.2 Million”