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On Tuesday Delaware Chancellor Leo Strine tossed out a suit challenging Bank of America’s mortgage practices because the plaintiffs had failed to request the bank’s records.
On Tuesday Delaware Chancellor Leo Strine tossed out a suit challenging Bank of America’s mortgage practices because the plaintiffs had failed to request the bank’s records.
(BOB HERBERT/THE NEWS JOURNAL)

BREAKINGVIEWS

M&A litigants getting mixed signals from Delaware court

The law of haste makes waste should govern M&A litigation. Delaware judges often warn attorneys to do their homework before suing. Now one group of legal eagles is being grounded for trying to do just that. The mixed message is undermining efforts to curb dubious suits over deals.

Almost every major transaction seems to be a target. State cases soared from fewer than 50 in 1996 to more than 260 in 2010, a Lewis & Clark Law School study shows. Federal cases hit 43 last year after jumping sixfold in 2010, according to NERA Economic Consulting.