Kevin Brady Discusses Recent Delaware Court of Chancery Ruling on Objection to Class Action Representative

Kevin Brady of Eckert Seamans discusses In Re Celera Corporation Shareholder Litigation, C.A., No. 6304-VCP (Del. Ch. March 23, 2012), recently decided by the Delaware Court of Chancery . In this case, the putative lead plaintiff in a class action, New Orleans Employees' Retirement System ("NOERS"), brought an action accusing various defendants of breaching their fiduciary duties in connection with the acquisition of Celera Corp. by Quest Diagnostics Inc. After NOERS was certified as the class representative, Celera's largest shareholder objected to NOERS' representative status, contending that it was susceptible to a unique defense atypical of the class. The basis of the objection was the fact that NOERS had sold its shares at a premium in the secondary market, which the objecting party contended constituted an acquiescence in Quest Diagnostics' wrongful conduct.

The case is discussed in detail on the Delaware Corporate & Commercial Litigation Blog.

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