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: Delaware Business Litigation ReportCourt of Chancery Approves Opt Out Settlement
By Morris James LLP
Marie Raymond Revocable Trust v. MAT Five LLC, C.A. 3843-VCL (Del. Ch. Dec. 19, 2008)
This decision has a good summary of the law governing certification of a class and when to approve a class settlement. Here the settlement permitted class members to opt out without the loss of any rights to pursue other related litigation. Thus, this decision distinguished the recent decision in Off v. Ross that had disapproved a settlement without opt out rights.
The interesting question is whether these two cases now mean that opt out classes are favored in Delaware. We doubt it. However, it is certainly the case that settlements with hardly any benefits to class members are receiving even greater scrutiny.
Full post as published by Delaware Business Litigation Report on December 19, 2008 (boomark / email).
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