CEI Objects to Shareholder Suit Settlement, Invokes Walgreen Decision
On behalf of objector David G. Duggan, the Competitive Enterprise Institute’s Center for Class Action Fairness is appealing the approval of the settlement of a shareholder suit in which the plaintiffs’ attorneys received $575,000, while the shareholders recovered only immaterial supplemental disclosures.
The district court in Aron v. Crestwood Midstream Partners refused to apply the Seventh Circuit’s landmark ruling against disclosure-only settlements in In re Walgreen Co. Stockholder Litigation, noting the lack of similar Fifth Circuit precedent. CEI asked the court in its opening brief to apply the Walgreen ruling to Aron v. Crestwood.
CEI Senior Attorney Anna St. John said, “The Walgreen ruling was a helpful step in protecting shareholders from getting the raw end of the deal in disclosure-only settlements. We hope the court recognizes that the same principles apply in Aron v. Crestwood.”
See CEI’s opening brief in Aron v Crestwood here and their work in the Walgreen case here.