WASHINGTON, D.C. – Lisa A. Rickard, president of the U.S. Chamber Institute for Legal Reform (ILR), made the following statement today about Delaware’s enactment of a law to bar companies from adopting “fee shifting” bylaws to guard against abusive merger-and-acquisition lawsuits (SB 75):
“We are disappointed that Delaware chose not to enact measures to deter abusive merger-and-acquisition lawsuits while prohibiting an important and useful tool for combating these unjustified lawsuits.
“In passing this new law, Delaware has also effectively authorized consolidation of much of merger-and-acquisition litigation in its own courts and promised the business community that its system will not tolerate lawsuit abuse and will fairly and actively weed out frivolous shareholder cases. The business world will be watching carefully to see if that promise holds true.”
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.