| Page 2 of 2 < |
Fairchild Executives' Settlement Rejected
|
TOOLBOX
   Resize
COMMENT
 Discussion Policy
 CLOSE
Comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. Finally, we will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site. Please review the full rules governing commentaries and discussions. You are fully responsible for the content that you post.
Who's Blogging  |
According to the rejected settlement, the Steiners denied wrongdoing.
"The company sought an amicable and reasonable resolution of this lawsuit and is disappointed by the vice chancellor's decision," Fairchild said in a statement provided by spokesman Howard Paster. "We will evaluate our options as to the most appropriate course for the company," the statement said.
Attorney Marc Topaz of the law firm Schiffrin & Barroway, who represented shareholders in the case, said his side will try again. The judge scheduled a follow-up hearing in June, according to Dow Jones/AP.
"If we're able to satisfy the judge's concerns and present a satisfactory revised settlement, we will explore that course, and if not, we plan to aggressively pursue our claims," Topaz said.
Lawsuits in the Delaware court and courts in other states have "a long history of settlements that look cosmetic and illusory but are accompanied by the corporation paying a generous award of attorneys' fees," said Coffee, the Columbia law professor.
In past cases where proposed settlements seemed inadequate, the Delaware court approved reduced attorneys' fees, Coffee said, adding that Strine's approach was "instead going to the heart of the problem."
The judge noted that two previous lawsuits did little to change Fairchild or its allegedly "supine" board, according to the Dow Jones/AP report.
"Get something real," he told attorneys in the case, according to Dow Jones/AP.
Fairchild's share price was unchanged yesterday at $2.25 on the New York Stock Exchange.
