WASHINGTON, D.C. – Lisa A. Rickard, president of the U.S. Chamber Institute for Legal Reform (ILR), issued the following statement today about Delaware’s introduction of legislation to bar companies from adopting “fee shifting” bylaws to guard against abusive merger-and-acquisition lawsuits (SB 75):
“This proposed fee-shifting bill does little to address the well-documented, longstanding problem of abusive merger-and-acquisition litigation in Delaware. In addition, it removes a useful tool for protecting innocent shareholders against these frivolous lawsuits with no new protections.
“Helping trial lawyers instead of shareholders calls into question Delaware’s commitment to maintaining the balanced legal system that until now has been the hallmark of its corporate franchise.”
ILR explained in detail the problem of abusive litigation and its objections to the Delaware Bar’s related proposal in an April 8 letter, which is available here.
ILR seeks to promote civil justice reform through legislative, political, judicial, and educational activities at the national, state, and local levels.
The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.