In a recent appeal in the Seventh Circuit, prominent class action objector Ted Frank has been granted permission to participate in two largely settled cases related to drugmaker Akorn Inc.’s proxy documents for a merger with Fresenius Kabi AG. The objective of Ted Frank’s participation is to facilitate the recovery of attorney’s fees.
Frank, an Akorn shareholder, who is known for frequently objecting in class action lawsuits, was deemed by the court as an appropriate participant in the context of the present dispute. This is attributed to the court’s observation that both the class counsel and Akorn appear to be focusing primarily on safeguarding their individual interests instead of those belonging to the class.
By virtue of this recent ruling, Frank is now enabled to petition the lower court, i.e., the U.S. District Court for the Northern District of Illinois, for sanctions or any other measures that he might consider needed.
It is noteworthy that this development signifies a potential challenge to attorney’s fees associated with merger disclosures, shedding new light on the dynamics governing class actions involving shareholder disputes and corporate mergers. Moreover, this incident also underscores the influential role that objectors can play in class action proceedings, contributing significantly to the evolving landscape of corporate litigation.
Therefore, corporate law firms and legal professionals need to be cognizant of such developments, duly considering the potential scenarios which might arise as a consequence of these court rulings. The task at hand, then, is to strategically navigate the legal and financial implications of such developments while simultaneously striving to uphold stakeholder interests.
Read the full article at Bloomberg Law.