Secured $49 million settlement against Delphi Financial and its executives for self-dealing in merger transaction
Plaintiff(s):
A large pension fund and Class A shareholders of Delphi Financial Group
Case type / claims:
Shareholder class action alleging that Delphi’s founder, CEO, and Chairman, Robert Rosenkranz, manipulated the terms of the company’s sale to Tokio Marine Holdings to secure a premium for his personal shares at the expense of other shareholders.
Defendant(s):
Delphi Financial Group, its Board of Directors, Tokio Marine Holdings, and TM Investment, Inc.
Jurisdiction:
Delaware Chancery Court
Year:
2012
Outcome:
- $49 million settlement against defendants, representing over 90% of claimed damages.
- Court found plaintiffs likely to succeed on the merits of their fiduciary duty claims.
- Case underscored heightened scrutiny of insider favoritism and unequal treatment of shareholders in merger transactions.
