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Freedman Quoted in Law360 About Proxy Battle Settlements

March 19, 2014

In the third installment of its outlook on the 2014 proxy season, Law360 (subscription required) turned to Olshan Partner Andrew Freedman for his views on the trend toward settlements this season. Many companies are engaging more constructively with activists and settling sooner in order to avoid expensive and time-consuming proxy contests. Freedman noted that "I wouldn't say last year that wasn't the trend, but I think this year has been marked by it." Freedman also points out that settlements may also offer an attractive alternative to a company that may be looking to avoid the fallout from a highly publicized proxy battle: "Depending on where they are with their strategic plan and financials, some companies just don't have the appetite for a multimonth-long proxy contest, which can prove extremely distracting to management and really can set them off course.” The settlement trend also allows fledgling activist funds to have influence on the marketplace, and as Freedman points out in the article, “Companies that are friendlier toward settlements offer newcomers an easier pathway to proving their muster.”

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