Grant & Eisenhofer achieves $49 million post-merger class action settlement with Delphi Financial
In re Delphi Financial Group Shareholder Litigation
: Grant & Eisenhofer P.A. achieved a $49 million settlement for Class A shareholders of Delphi Financial Group. In a case challenging Delphi’s buyout by Tokio Marine Holdings Inc, shareholders alleged that Robert Rosenkranz, founder, CEO and Chairman of Delphi, took more than $70 million in buyout consideration for himself at the expense of Delphi’s shareholders and influenced the Board to change the terms of the certain classes of stock to obtain a premium for his personal shares.
In reviewing the case, Vice Chancellor Glasscock allowed the merger to go to shareholder vote but stated in his opinion “that the Plaintiffs have demonstrated a likelihood of success on the merits” regarding the Rosenkranz allegations. The settlement, which is pending final approval, provides extra compensation to Class A shareholders, in addition to the $43.875 per Class A share and $1.00 in cash per share special dividend.
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