On July 6, 2023, Chancellor Kathaleen St. J. McCormick of the Delaware Court of Chancery provided a written opinion interpreting a previous bench ruling on a mootness fee awarded to a plaintiff’s counsel in a class action lawsuit from supposed stockholders. This lawsuit was initiated against Magellan Health, Inc. and its directors, linked to its absorbed by Centene Corporation. This case is known as Anderson v. Magellan Health, Inc., C.A. No. 2021-0202-KSJM (Del. Ch. July 6, 2023).
Typically, mootness fees are awarded in response to lawsuits that become moot due to the subsequent altering or abandonment of an impugned procedure by the defendant. The corresponding lawsuit in question had begun post the procurement of Magellan Health by Centene Corporation.
The specifics regarding Chancellor McCormick’s interpretation of the mootness fee and its impact on supplemental disclosures in this particular case remain limited in the currently available documentation. Complexities such as the calculation of the fee, the standard applied to the award, and the effect on future cases are aspects worthy of examination. We’ll continue to follow these developments and report as more information is revealed.
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