Grant & Eisenhofer secured a $70 million settlement as co-lead counsel against Jefferies Group’s Board and Leucadia for conflicted merger negotiations
Plaintiff(s):
Shareholders of Jefferies Group, Inc.
Case type / claims:
Shareholder class action alleging that Jefferies’ Board breached its fiduciary duties by approving the company’s sale to Leucadia National Corporation at an undervalued price. Plaintiffs asserted that Jefferies’ CEO and President were conflicted, prioritizing personal advancement within Leucadia over securing maximum value for shareholders.
Defendant(s):
Jefferies Group, Inc. Board of Directors and Leucadia National Corporation
Jurisdiction:
Delaware Chancery Court
Year:
2015
Outcome:
- $70 million settlement against defendants, one of the largest post-closing merger fairness recoveries in Delaware Chancery Court history.
- Settlement provided additional consideration to former Jefferies shareholders without reduction for fees or expenses.
- Case reinforced the importance of independent, conflict-free board negotiations in change-of-control transactions.
