The Complaint's contents provide a sound basis for evaluating the Settlement, because its allegations present Lead Counsel's claims in the strongest possible light.
After trial, once the defendants introduced competing evidence, Lead Counsel's case could only become weaker.
Will , Skadden, Arps, Slate, Meagher & Flom LLP, Wilmington, Delaware; Attorneys for Nominal Defendant Activision Blizzard, Inc. Anthony Pacchia (the "Lead Plaintiff") and his attorneys ("Lead Counsel") challenged a transaction in which Vivendi S. divested its controlling equity position in Activision Blizzard, Inc. The transaction restructured Activision's governance profile and stockholder base, so this decision calls it the Restructuring.
The facts are drawn from the allegations of the Verified Fifth Amended Class and Derivative Complaint (the "Complaint"), which was the operative pleading at the time of the Settlement, and from the affidavits and supporting documents submitted in connection with the application court approval.
If the Settlement is adequate when judged against the allegations of the Complaint, then it should compare favorably to the range of potential outcomes post-trial.
A., Philippe Capron, Frédéric Crépin, Régis Turrini, Lucian Grainge, Jean-Yves Charlier, and Jean-François Dubos. It denies any fee award to Pfeiffer and Benston's counsel.
A., Wilmington, Delaware; Jessica Zeldin , Rosenthal, Monhait & Goddess, P. Mircheff , Gibson, Dunn & Crutcher LLP, Los Angeles, California; Attorneys for Defendants Vivendi S. Wagener , Sullivan & Cromwell LLP, New York, New York; Attorneys for Defendants Robert A. Joint objectors Milton Pfeiffer and Mark Benston did not object to the Settlement. This decision approves the Settlement, awards .5 million to Lead Counsel, and authorizes Lead Counsel to make a ,000 payment to the Lead Plaintiff from their award.
In exchange for a global release of all claims relating to the Restructuring, the defendants agreed to (i) pay 5 million to Activision, (ii) reduce a cap on the voting power wielded by Activision's two senior officers from 24.5% to 19.9%, and (iii) expand Activision's board of directors (the "Board") to include two independent individuals unaffiliated with the two senior officers.
Selden , Ross Aronstam & Moritz LLP, Wilmington, Delaware; William Savitt , Ryan A. Klein , Wachtell, Lipton, Rosen & Katz, New York, New York; Attorneys for Defendants Robert J. Douglas Hayes, who previously sought the lead plaintiff role, lodged the only objection to the Settlement itself.
When Lead Counsel sought court approval for the Settlement, three objectors appeared.