Achieved injunctive relief as co-lead counsel requiring an independent fairness opinion in the NYSE–Archipelago merger
Plaintiff(s):
Seat holders of the New York Stock Exchange (NYSE)
Case type / claims:
Shareholder class action challenging the fairness of the merger between the NYSE and Archipelago Holdings, LLC. Plaintiffs alleged that NYSE directors breached their fiduciary duties of care, loyalty, and candor by approving a transaction tainted by conflicts of interest and by failing to obtain a fair and independent valuation.
Defendant(s):
New York Stock Exchange Board of Directors
Jurisdiction:
New York Supreme Court
Year:
2006
Outcome:
- Court denied defendants’ motion to dismiss and proceeded to expedited discovery with over 30 depositions in five weeks.
- Following a preliminary injunction hearing, defendants agreed to plaintiffs’ requested relief — obtaining a fairness opinion from an independent financial advisor.
- Case reinforced the duty of exchange and market boards to ensure transparency and independence in self-regulatory mergers.
