Olshan Achieves Delaware Litigation Victory for Client Stilwell Value
Law360 (subscription required) reported that Delaware Vice Chancellor J. Travis Laster ruled in favor of Olshan client Stilwell Value by awarding over $600k in legal fees in connection with a complaint brought against HopFed Bancorp Inc. The complaint accused HopFed of adopting irrational and overbroad rules disqualifying from director service anyone sanctioned by financial regulators as well as qualified independent candidates nominated by sanctioned investors. HopFed was also accused of using its share repurchase power to eliminate the company’s second-largest independent investor and of developing an employee stock ownership plan that created a pro-management voting block. Thomas Fleming, the lead attorney, said in the article that the case and firm met all requirements for a mootness fee, including a determination that the original complaint had merit, produced benefits corresponding to the lawsuits’ original goals and was a direct spur for the bylaw changes. “The bylaw, I think it’s clear, had a real effect, and the board knew at the time they had the upper hand,” Tom noted of the disputed measure. He continued by stating the change resulting from the suit “does open the door to an opposition party and many others to participate.” Activist associate Meagan Reda also assisted in this matter.