A surprisingly high percentage of mergers and acquisitions (M&A) are contested by shareholders, which involve Directors & Officers (D&O) Insurance claims. According to a recent analysis by Cornerstone Research (see here), 94% of deals valued in excess of $100 million during 2013 were challenged by shareholders, up from 93% in 2012.
The analysis is based on a review of shareholder suits, typically class actions, filed by shareholders of public companies. According to the study, 612 suits were filed, with each deal averaging 5 suits. The study does not include statistics for contested M&A deals regarding private companies.
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